SeaWorld Entertainment Inc is likely to face charges that it violated SEC laws over disclosures regarding the fallout of the ‘Blackfish’ documentary.
The U.S. Securities and Exchange Commission sent SeaWorld notice of possible charges over ‘certain disclosures and public statements made by the company and certain individuals on or before August 2014.’
Attendance at SeaWorld parks plunged after the screening of ‘Blackfish’ while executives maintained there was little to no impact for many months.
The company has been on a downward spiral more or less ever since, with two CEO changes in that time.
The Justice Department also opened a criminal investigation, while a group of investors filed a lawsuit alleging misleading statements regarding its financial performance.
The company revealed it had received a so-called ‘wells notice’ from the SEC.
A wells notice doesn’t guarantee charges will be brought but notes there is serious concern over potential wrongdoing under U.S. federal securities laws.
Action by the SEC could result in ‘various civil or administrative actions or proceedings, and may seek remedies that include civil money penalties,’ SeaWorld said in a filing.
