Seventeen unitholders stand together to stop the sale of Cedar Fair.
A lawsuit consolidating 11 complaints reiterates the unitholders' concerns the sale price of $11.50 per unit undervalues the company's worth and unfairly deprives them of the profits they seek.
The new lawsuit argues the process and discussions that led up to the Dec. 16 sale agreement to Apollo Global Management was flawed. It also claims the preliminary proxy statement contains flawed or incomplete information, which could influence how unitholders vote on the sale.
The sale must be approved by voters representing two-thirds of the outstanding units.
"As a result of the unlawful actions of defendants Cedar Fair and Apollo, Plaintiffs and the other members of the Class will be irreparably harmed in that they will not receive fair value for Cedar Fair's assets and business," the plaintiffs argue.
The deal has been valued at $2.4 billion, including $1.6 billion in debt.
Lawyers for Cedar Fair and Apollo Global Management have until Feb. 9 to respond to the new lawsuit and intend to ask for the case to be dismissed.