A lawsuit by shareholders alleging SeaWorld executives lied about the impact of the ‘Blackfish’ controversy could be put on hold but it is far from good news for the beleaguered theme park operator.
The U.S. Justice Department has launched a criminal investigation into the matter.
Acting chief of the DOJ’s Fraud Section Sandra Moser confirmed a federal investigation is ongoing.
The DOJ is seeking a suspension of the lawsuit until November 30 while it conducts its inquiries.
“Because of the important interest in maintaining the integrity of criminal investigations, it is well-established that, under these circumstances, such intervention is appropriate and in the public interest,” Moser wrote in a filing.
The civil lawsuit was filed back in 2014 by a group of investors claiming executives misled the markets.
In June, SeaWorld admitted the DOJ and the U.S. Securities and Exchange Commission were looking at previous disclosures by the company over the negative impact, or lack of it, regarding ‘Blackfish.’
Court records show former CEO Jim Atchison has recently hired a personal attorney.
Atchison, named as a defendant, was previously represented by the company’s legal team.
He repeatedly denied there was any negative impact to the business because of the ‘Blackfish’ documentary although he quietly offloaded more than $4.6 million in shares, the lawsuit alleges.
