Robbins LLP: SeaWorld Entertainment, Inc. (SEAS) Stock Falls Over 30% After Violations of Federal Law are Revealed, According to Class Action
Robbins LLP announces that an investor of SeaWorld Entertainment, Inc. (NYSE: SEAS) has filed a federal securities fraud class action complaint in the U.S. District Court for the Southern District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Act of 1933 and the Securities Exchange Act of 1934 between April 18, 2013 and August 13, 2014. SeaWorld operates as a theme park and entertainment company in the United States.
SeaWorld Is Accused of Misrepresenting Reason for Decline in Attendance
According to the complaint, shares of SeaWorld dropped nearly 33% to close at $9.25 on August 13, 2014, following an announcement by the company it was lowering its full year 2014 revenue and Adjusted EBITDA to the range of 6-7% and 14-16%, respectively. In that same announcement, SeaWorld admitted that the negative publicity from the Blackfish film and the pressure and demand for legislation in California prohibiting the captivity of Orcas for entertainment purposes caused a decline in attendance.
The complaint further alleges that SeaWorld’s registration statement and prospectus for its initial public offering was materially false because it failed to disclose that it had: (i) improperly cared for and mistreated its Orcas causing mental distress, affecting the safety of trainers and audience members; (ii) continued to feature an Orca that had injured or killed several trainers; and (iii) as a consequence of these actions, expose the company to material and uncertainties that could negatively impact attendance at its parks.
SeaWorld Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.