The film, called Blackfish, criticised 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 claimed that between December 2013 and 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, in August 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.

Steven Peikin, co-director of the SEC enforcement division, said: ‘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.’

SeaWorld and Atchison have agreed to settle the SEC’s charges without admitting or denying the allegations, with SeaWorld paying a $4m penalty and Atchison paying over $1m in penalty and disgorgement. 

SeaWorld’s former vice president of communications, Frederick 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.

Report by Pat Sweet