As we blogged about last week, securities class action lawsuits occur when an investor has purchased a stock and its value goes down, because the company or its management have given an erroneously positive picture of its finances and prospects.
It is wrong for a company to withhold information that could be detrimental to investors, as it could cost them a large sum of money.
Recently, the Orlando Sentinel reported that SeaWorld could face potential litigation, as there are investors mulling a potential class action lawsuit against the chain, saying it knew the documentary “Blackfish” affected visits to parks over the past few months and did not share the information.
According to the Sentinel, during a recent earnings report, SeaWorld said the 2013 documentary contributed to negative media attention and a decline in attendance at its parks. Previously, the company had said the movie had a “negligible effect on attendance.”
SeaWorld stocks dropped by 33 percent after its earnings were reported for the second financial quarter. At an initial public offering in 2013, the stock was at $27—on August 18, it closed the day at $18.90.
Should I Speak to an Attorney About a Securities Class Action Lawsuit?
Lawsuits like this allow investors who have been affected by the negligence of a business to receive compensation. People who invest money into a company deserve a fair and accurate portrayal of its prospects. Deceit should not be tolerated.
If you wish to discuss a potential class action securities case or have any questions, please contact Gary S. Graifman, Esq. toll free at (800) 711-5258.
Kantrowitz, Goldhamer & Graifman, P.C. – Class Action Lawyers