SeaWorld and Former CEO to Pay More Than $5 Million to Settle Fraud Charges
SeaWorld Entertainment Inc. and its former CEO James Atchison misled investors about the impact of the documentary Blackfish on attendance and reputation, resulting in a $5 million settlement with the SEC, while former VP Frederick Jacobs paid $100,000 in disgorgement after cooperating with the investigation.
SeaWorld Entertainment Inc. and former CEO James Atchison agreed to pay over $5 million to settle SEC fraud charges for making untrue or misleading statements from December 2013 to August 2014 about the impact of the documentary Blackfish on the company’s business. SeaWorld paid a $4 million penalty, Atchison paid more than $1 million in penalties and disgorgement, and former VP of Communications Frederick Jacobs settled for $100,000 in disgorgement and interest without a penalty due to cooperation. All parties settled without admitting or denying the allegations, and the SEC charged them with violating antifraud provisions and reporting requirements under federal securities laws.
SeaWorld Entertainment Inc. and its former CEO, James Atchison, agreed to pay more than $5 million to settle SEC fraud charges for misleading investors about the negative impact of the documentary Blackfish on the company’s reputation and business from December 2013 through August 2014. Despite internal awareness of declining attendance linked to the film’s widespread media attention, SeaWorld and Atchison made false or omitted material information in SEC filings, earnings releases, investor calls, and press statements. On August 13, 2014, when SeaWorld finally acknowledged that Blackfish had contributed to declining attendance, its stock price fell sharply, causing significant losses to shareholders. SeaWorld paid a $4 million penalty, Atchison paid over $1 million in penalties and disgorgement, and former VP of Communications Frederick Jacobs settled for $100,000 in disgorgement and prejudgment interest without a penalty due to his substantial cooperation with the investigation. All settlements were reached without admission or denial of the allegations and are pending court approval. The SEC charged SeaWorld with violations of antifraud provisions and reporting requirements under federal securities laws, emphasizing the importance of timely and accurate disclosure when adverse events affect key business assets. The investigation was conducted by SEC staff in the Denver office and supervised by senior enforcement officials.
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- $5.00M $5 million $1M–$10M
- $4.00M $4 million $1M–$10M
- $1.00M $1 million $1M–$10M
- $100K $100,000 $100K–$1M
- person frederick d. jacobs
- person Ian Karpel
- person james atchison
- person james lyman
- person kurt gottschall
- person lee robinson
- company seaworld entertainment inc.
- agency sec's investigation
- agency Securities and Exchange Commission
- SEC announced SeaWorld Entertainment Inc. and former CEO agreed to pay more than $5 million to settle fraud charges
- SeaWorld Entertainment Inc. agreed to pay $4 million penalty
- James Atchison agreed to pay over $1 million in penalty and disgorgement
- Frederick D. Jacobs agreed to pay approximately $100,000 in disgorgement and prejudgment interest
- SeaWorld Entertainment Inc. charged with violating antifraud provisions of federal securities laws and reporting violations
- James Atchison charged with violating antifraud provisions of federal securities laws
- SeaWorld Entertainment Inc. made misleading statements about Blackfish's impact on company reputation and business from December 2013 through August 2014
- James Atchison made misleading statements about Blackfish's impact on company reputation and business from December 2013 through August 2014
- SeaWorld Entertainment Inc. acknowledged on August 13, 2014 declining attendance was partially caused by negative publicity
- Blackfish criticized SeaWorld's treatment of orcas
- Frederick D. Jacobs served as SeaWorld's former vice president of communications
- James Lyman conducted SEC's investigation
- Lee Robinson conducted SEC's investigation
- Ian Karpel supervised SEC's investigation
- Kurt Gottschall supervised SEC's investigation
The Securities and Exchange Commission today announced that SeaWorld Entertainment Inc. and its former CEO have agreed to pay more than $5 million to settle fraud charges for misleading investors about the impact the documentary film Blackfish had on the company’s reputation and business. SeaWorld’s former vice president of communications also agreed to settle a fraud charge for his role in misleading SeaWorld’s investors. Blackfish criticized SeaWorld’s treatment of its orcas (killer whales) and received significant media attention as the film became more widely distributed in the latter half of 2013. The SEC’s complaint alleges that from approximately December 2013 through August 2014, SeaWorld and former CEO James Atchison made untrue and misleading statements or omissions in SEC filings, earnings releases and calls, and other statements to the press regarding Blackfish’s impact on the company’s reputation and business. According to the SEC’s complaint, on Aug. 13, 2014, when SeaWorld for the first time acknowledged that its declining attendance was partially caused by negative publicity, SeaWorld’s stock price fell, causing significant losses to shareholders. “This case underscores the need for a company to provide investors with timely and accurate information that has an adverse impact on its business. SeaWorld described its reputation as one of its ‘most important assets,’ but it failed to evaluate and disclose the adverse impact Blackfish had on its business in a timely manner,” said Steven Peikin, Co-Director of the SEC Enforcement Division. The SEC’s complaint, filed in federal court in New York, charges SeaWorld and Atchison with violating antifraud provisions of the federal securities laws and charges SeaWorld with reporting violations. SeaWorld and Atchison have agreed to settle the SEC’s charges without admitting or denying the allegations, with SeaWorld paying a $4 million penalty and Atchison paying over $1 million in penalty and disgorgement. SeaWorld’s former vice president of communications, Frederick D. Jacobs, agreed to settle a fraud charge and to pay disgorgement and prejudgment interest of approximately $100,000. He was not assessed a penalty, reflecting his substantial assistance in the SEC’s investigation. All of the settlements are subject to court approval. The SEC’s investigation was conducted by James Lyman and Lee Robinson and supervised by Ian Karpel and Kurt Gottschall of the Denver office.
The Securities and Exchange Commission today announced that SeaWorld Entertainment Inc. and its former CEO have agreed to pay more than $5 million to settle fraud charges for misleading investors about the impact the documentary film Blackfish had on the company’s reputation and business. SeaWorld’s former vice president of communications also agreed to settle a fraud charge for his role in misleading SeaWorld’s investors. Blackfish criticized SeaWorld’s treatment of its orcas (killer whales) and received significant media attention as the film became more widely distributed in the latter half of 2013. The SEC’s complaint alleges that from approximately December 2013 through August 2014, SeaWorld and former CEO James Atchison made untrue and misleading statements or omissions in SEC filings, earnings releases and calls, and other statements to the press regarding Blackfish’s impact on the company’s reputation and business. According to the SEC’s complaint, on Aug. 13, 2014, when SeaWorld for the first time acknowledged that its declining attendance was partially caused by negative publicity, SeaWorld’s stock price fell, causing significant losses to shareholders. “This case underscores the need for a company to provide investors with timely and accurate information that has an adverse impact on its business. SeaWorld described its reputation as one of its ‘most important assets,’ but it failed to evaluate and disclose the adverse impact Blackfish had on its business in a timely manner,” said Steven Peikin, Co-Director of the SEC Enforcement Division. The SEC’s complaint, filed in federal court in New York, charges SeaWorld and Atchison with violating antifraud provisions of the federal securities laws and charges SeaWorld with reporting violations. SeaWorld and Atchison have agreed to settle the SEC’s charges without admitting or denying the allegations, with SeaWorld paying a $4 million penalty and Atchison paying over $1 million in penalty and disgorgement. SeaWorld’s former vice president of communications, Frederick D. Jacobs, agreed to settle a fraud charge and to pay disgorgement and prejudgment interest of approximately $100,000. He was not assessed a penalty, reflecting his substantial assistance in the SEC’s investigation. All of the settlements are subject to court approval. The SEC’s investigation was conducted by James Lyman and Lee Robinson and supervised by Ian Karpel and Kurt Gottschall of the Denver office.