News SeaWorld Likely Facing SEC Claims Over Misleading Investors

Login or Register to Hide This Ad

Alf33

Life is short, so eat dessert first.
Jun 8, 2013
620
1,416
93
Chesapeake, VA
Seaworld is only paying $19.5 Million with the remaining $45.5 Million coming from insurance.
@Gavin, Is the below info from a Seaworld SEC filing on the 11th what you are referencing?

"On February 11, 2020, SeaWorld Entertainment, Inc. (the “Company”) announced that it had entered into a settlement agreement with respect to a previously disclosed class action lawsuit commenced in 2014, captioned Baker v. SeaWorld Entertainment, Inc., et al., Case No. 14-CV-02129-MMA (AGS) (“Baker”).

The proposed settlement, which is subject to certain conditions, including court approval, requires the Company to pay $65.0 million for claims alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as well as the costs of administration and legal fees and expenses. The proposed settlement does not include or constitute an admission, concession, or finding of any fault, liability, or wrongdoing by the Company or any defendant. There can be no assurance that the proposed settlement agreement will be approved by the court.

In addition, on February 11, 2020, the Company announced it had entered into a binding agreement for the settlement of a previously disclosed putative derivative lawsuit commenced in 2014, captioned Kistenmacher v. Atchison, et al., Civil Action No. 10437 (“Kistenmacher”), filed in the Court of Chancery of the State of Delaware. Pursuant to the agreement, the Company will receive $12.5 million of insurance proceeds from the Company’s insurers which can be used for general corporate purposes and will adopt certain corporate governance modifications. The final settlement of the matter remains subject to a formal agreement and court approval. There can be no assurance that the final settlement agreement will be executed or that such agreement will be approved by the court.

In summary, the above two settlements (which are in no way contingent on each other) will require the Company to make a payment of $65.0 million which the Company intends to fund as follows: (i) approximately $33.0 million in insurance proceeds for the Baker case, (ii) $12.5 million of insurance proceeds related to the Kistenmacher case and (iii) approximately $19.5 million from the Company’s cash."
 

Gavin

It’s me, a ParkFan.
Administrator
Sep 27, 2009
4,830
4,422
113
28
Spotsylvania, Virginia
“In summary, the above two settlements (which are in no way contingent on each other) will require the Company to make a payment of $65.0 million which the Company intends to fund as follows: (i) approximately $33.0 million in insurance proceeds for the Baker case, (ii) $12.5 million of insurance proceeds related to the Kistenmacher case and (iii) approximately $19.5 million from the Company’s cash."
Specifically this part, but yes.
 
  • Like
Reactions: Alf33

Zachary

BGW Eggspert
Administrator
Sep 23, 2009
13,751
36,384
113
Newport News, VA
twitter.com
  • Like
Reactions: Nicole and Dombot

Mushroom

Getting aHEAD of myself
Advisory Panel
Feb 12, 2011
5,692
16,057
113
Just an update here: It’s finally going forward.


Moral of the story? Don’t lie to your investors, kids. They don’t like that.
Maybe they’ll pull an alpha move and just decide they won’t pay that fee, either.
 
Login or Register to Hide This Ad