SeaWorld Likely to Face SEC Claims Over Misleading Investors

• April 12 2018
• Christopher Palmeri

SeaWorld Entertainment Inc. is likely to face civil charges that it violated securities laws back in 2014, when the company was dealing with scrutiny over its treatment of captive killer whales.

SeaWorld Entertainment Inc. is likely to face civil charges that it violated securities laws back in 2014, when the company was dealing with scrutiny over its treatment of captive killer whales.

On April 6, SeaWorld received a Wells notice from the U.S. Securities and Exchange Commission regarding “certain disclosures and public statements made by the company and certain individuals on or before August 2014,” according to a filing Thursday. The Justice Department is also investigating, SeaWorld said last June.

Attendance at the company’s parks tumbled after the 2013 documentary “Blackfish” raised questions about the orcas in SeaWorld’s care. Sales and earnings have declined for years in its wake and the company has experienced several rounds of management upheaval, with the most recent chief executive officer stepping down in February.

SeaWorld, based in Orlando, Florida, said it’s cooperating with the SEC and plans to tell agency staff why no action should be taken.

Shares of SeaWorld fell 4.2 percent to $14.75 in extended trading. The stock is up 13 percent this year.