SeaWorld reaches settlement on ‘Blackfish’
Deal worth $65 million; company was sued over impact of movie
SeaWorld Entertainment Inc. agreed Tuesday to pay $65 million to to end a 2014 class-action civil lawsuit in which the theme park company was accused of misleading investors over the impact the documentary “Blackfish” was having on its bottom line.
The Orlando, Fla.-based company revealed the settlement in a new SEC filing. In it, SeaWorld said it does not admit wrongdoing in the settlement that still must be approved by the courts.
The company said it would pay for the settlement using about $45.5 million in insurance proceeds and $19.5 million in cash.
The “Blackfish” documentary gave a damning portrayal of keeping whales in captivity, and told the story of Dawn Brancheau, the SeaWorld animal trainer who was killed during a performance in 2010 by the orca Tillikum.
Attendance and revenue declined after the documentary’s 2013 release.
In the 2014 lawsuit filed in California, a group of investors accused SeaWorld executives of ignoring and denying the film’s backlash.
Internal emails released in the court case showed SeaWorld executives complained about “Blackfish” hurting business in late 2013 or early 2014 — months before the company admitted in August 2014 that the movie hurt attendance, previously released court records show.
SeaWorld also was under investigation by the federal government for similar allegations.
In 2018, the U.S. Securities and Exchange Commission fined SeaWorld $4 million and its former CEO James Atchison $1 million to settle federal fraud claims alleging they had made misleading statements about the documentary’s impact.
SeaWorld Entertainment is based in Orlando and runs 12 theme parks across the company.
The company has rebounded in the last two years as it aggressively added new rides, cut expenses and changed how animals are used in its shows.
SeaWorld recently said it will stop letting trainers ride on the noses and backs of dolphins.
SeaWorld said in a statement that it’s “continually evolving its animal presentations for both guests and their animals.”