NEW YORK (Reuters) - SeaWorld Entertainment Inc and its former Chief Executive James Atchison have agreed to pay more than $5 million to settle U.S. Securities and Exchange Commission fraud charges for misleading investors about the negative effect that the 2013 documentary "Blackfish" would have on the company's reputation and business.
The SEC on Tuesday said SeaWorld improperly downplayed the impact of the documentary, which criticized its treatment of orcas, or killer whales, over an eight-month period that ended in Aug. 2014, when the company acknowledged that bad publicity was hurting attendance. It said SeaWorld's stock fell by about a third as a result.
"This case underscores the need for a company to provide investors with timely and accurate information that has an adverse impact on its business," Steven Peikin, co-director of the SEC enforcement division, said in a statement.
SeaWorld did not immediately respond to a request for comment.
(Reporting by Jonathan Stempel in New York; Editing by Chizu Nomiyama and Marguerita Choy)
Disclaimer: No Business Standard Journalist was involved in creation of this content
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app