Amusement park investor alleges dishonesty

AP News
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Posted: May 11, 2011 6:48 PM
Amusement park investor alleges dishonesty

The largest investor in America's third-largest amusement park chain has filed a federal lawsuit in Ohio alleging that certain board members misled shareholders with false financial documents filed with the government.

The lawsuit against Ohio-based Cedar Fair Entertainment Co. was filed this week by Q Funding III L.P. and Q4 Funding L.P. of Fort Worth, Texas. It claims the directors in 2004 approved secret regulations that prohibit investors from nominating board members. The lawsuit says the policy was revealed in 2010 when the companies sued in an attempt to nominate directors.

Cedar Point spokeswoman Stacy Frole tells the Sandusky Register the allegations are false and that the rules have been in the annual proxy statements filed with the government since 2004.

The newspaper reports that Q has filed a similar lawsuit in Texas.