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    SeaWorld, ex-execs must pay $5M to settle “Blackfish” claim

    By SHOOTUpdated:No Comments2685 Views
    A scene from "Blackfish"

    By Mike Schneider

    ORLANDO, Fla. (AP) --

    SeaWorld and two former executives on Tuesday agreed to pay more than $5 million to settle federal fraud claims that they misled investors about the negative impact the 2013 documentary "Blackfish" had on business.

    The U.S. Securities and Exchange Commission filed the complaint in federal court in New York as well as the proposed settlements, which are subject to court approval. The SEC's complaint alleged SeaWorld and former CEO James Atchison made misleading and false statements or omissions in SEC filings, earnings releases and calls about the documentary's impact on the company's reputation and business from December 2013 to August 2014.

    During the first three months of 2014, Atchison sold stock as part of a trading plan he had entered into before that period, allowing him to avoid losses of almost $740,000, according to the complaint.

    In August 2014, SeaWorld for the first time made a filing with the SEC that revealed the company was facing declining attendance following the movie's release. The company's stock price plummeted by a third and SeaWorld's stock was downgraded by analysts, causing an $830 million loss in shareholder value, according to the SEC complaint.

    "The defendants should have known that the 'Blackfish' effect, if and when such occurred, would be material to investors," the complaint said.

    Directed by Gabriela Cowperthwaite, "Blackfish" chronicled the life of Tilikum, an orca that killed a SeaWorld trainer during a performance in Orlando in 2010.

    In a statement, SeaWorld said the company neither admits nor denies the allegations under the settlement.

    "The company is pleased to have resolved this matter and to continue to focus on delivering superior guest experiences, world-class animal care and rescuing animals in need," said the statement from corporate communications director Travis Claytor.

    Online court records didn't show attorneys for Atchison or Fred Jacobs, SeaWorld's former vice president of communications.

    Under the settlement proposal, SeaWorld would pay a $4 million penalty, Atchison would pay more than $1 million for a penalty and pay-back and Jacobs would pay $100,000 in pay-back.

    Tags:BlackfishGabriela CowperthwaiteSeaWorld



    DirecTV calls off acquisition of rival Dish, possibly ending a yearslong pursuit

    Friday, November 22, 2024
    Dish Network satellite dishes are shown at an apartment complex in Palo Alto, Calif., Feb. 23, 2011. (AP Photo/Paul Sakuma, File)

    DirecTV is calling off its planned acquisition of rival Dish after the offer was rejected by bond holders at that company.

    The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively.

    The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September.

    DirecTV was looking to acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that included a payment of $1, plus the assumption of approximately $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish.

    "While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV's balance sheet and our operational flexibility," DirecTV CEO Bill Morrow said in a statement.

    The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns.

    The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink.

    DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer... Read More

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