Six Flags is being accused of misrespresenting the state of its parks leading up to its $8 billion merger with Cedar Fair. A federal class-action lawsuit, filed last week by the City of Livonia Employees' Retirement System, alleges that Six Flags suffered from "chronic underinvestment" and cut costs by slashing employee headcount. Six Flags is being accused of hiding the fact that it "required a massive, undisclosed capital infusion to turn the company around." The lawsuit states that Six Flags's merger statement with the SEC "negligently prepared" and did not represent the true state of the company's assets.

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