Documents show
that SeaWorld investors who are suing the company alerted the courts about a government probe more than a year before SeaWorld disclosed the investigation in an SEC filing.
SeaWorld investors who are suing the company alerted the courts about an “informal” government probe in May 2016 — more than a year before SeaWorld was subpoenaed and disclosed the investigation in a SEC filing, court documents show.
The court documents were sealed but then nearly a year later, SeaWorld said it was under investigation by the U.S. Department of Justice and U.S. Security and Exchange Commission in a June 23 disclosure.
Spokesmen at the two federal agencies have declined to comment, saying they neither confirm nor deny investigations.
The investigations center around executives’ statements about the “Blackfish” documentary’s impact and trading in the park’s securities, SeaWorld’s disclosure said. The 2013 anti-animal captivity movie depicted Tilikum, a performing killer whale who killed became infamous for killing an Orlando trainer in 2010.
A group of investors sued SeaWorld, accusing the company of ignoring and denying the backlash caused by Sundance film as attendance and stock prices dropped. Company executives misled shareholders or were deliberately not forthcoming about the film’s effect, the amended 2016 lawsuit filed in federal court said.
SeaWorld blamed the attendance drop for four consecutive quarters on reasons including weather, holiday and school schedules or its pricing schedules after the movie was released, the lawsuit said.
“Yet, when directly questioned whether ‘Blackfish’ was contributing to the steep attendance declines, Defendants repeatedly assured the market the film had not contributed ‘at all,’ even suggesting the film was positively impacting the Company," the lawsuit said. “Finally, before the start of trading on August 13, 2014, after a year of express denials, excuses and omissions, SeaWorld finally admitted that ‘Blackfish’ related issues were hurting attendance at its parks."
SeaWorld officials are looking to change the park’s image as they added a new late-night fireworks show, a virtual reality roller coaster and will build a Sesame Street land that opens in fall 2022 in Orlando.
“Our … plan and our path forward are very clear and we are moving with urgency on all fronts,” Chief Executive Officer Joel Manby told analysts in February.