The father of a five-year-old black girl claims she was snubbed by Sesame Place costume characters at a meet and greet event.
A video of the alleged incident at the Philadelphia theme park last month was shared by the law firm representing the family on Thursday.
It appears to show characters dancing in the street before an employee dressed as Ernie walks to the side to shake hands with a young spectator.
But five-year-old Kennedi, who has her hand reached out, doesn't get a hand shake.
She then turns around to the camera and looks upset not to have had her turn.
Sesame Place apologised in a statement and explained that the actor inside the costume simply couldn't see her due to the costume's limited field of vision.
Kennedi's dad Quinton Burns claims his daughter was ignored.
He has filed a $25 million (more than £20m) class-action lawsuit against SeaWorld Parks, the owner of Sesame Place, for "pervasive and appalling race discrimination," the New York Post reports.
"Just looking at her face, it makes me want to cry every time I see it," Mr Burns said during a press conference on Wednesday, CBS Baltimore reported.
According to reports, the lawsuit claims Kennedi was ignored by four characters at the event due to her race.
A lawyer claimed white children were able to interact, have hugs and high five the characters.
Sesame Place said it’s taking action to review its practices to identify necessary changes.
Sesame Place responded to the lawsuit in a statement sent to Eyewitness News, saying: “We will review the lawsuit filed on behalf of Mr. Burns.
"We look forward to addressing that claim through the established legal process. We are committed to deliver an inclusive, equitable and entertaining experience for all our guests.”
Sesame Street Philadelphia said on Twitter : “We sincerely apologise to the family for their experience in our park on Saturday; we know that it’s not ok. We are taking actions to do better.”