ORLANDO, Fla. (WESH) — The SEC has fined SeaWorld and its former CEO $5 million for misleading investors about how the film “Blackfish” affected the company’s theme parks and overall business.
SeaWorld will be paying a $4 million penalty and former CEO James Atchison will pay over $1 million in penalties, the U.S. Securities and Exchange Commission said Tuesday.
SeaWorld’s former vice president of communications, Frederick Jacobs also agreed to pay about $100,000 to settle a fraud charge.
“Blackfish” criticized SeaWorld’s treatment of its orcas and received significant media attention as the film became widely distributed in the latter half of 2013.
The SEC’s complaint alleges that from approximately December 2013 through August 2014, SeaWorld and Atchison made untrue and misleading statements or omissions in SEC filings, earnings releases and calls, and other statements to the press regarding Blackfish’s impact on the company’s reputation and business.
According to the SEC’s complaint, on Aug. 13, 2014, when SeaWorld for the first time acknowledged that its declining attendance was partially caused by negative publicity, SeaWorld’s stock price fell, causing significant losses to shareholders.
