Tags: moviepass | new york | attorney general | investigation

MoviePass Faces NY AG Probe Into Whether It Misled Investors

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The parent company of MoviePass is under investigation into whether it misled investors. (Dreamstime)

By    |   Thursday, 18 October 2018 10:26 AM

MoviePass' parent company, Helios and Matheson, is under investigation by New York Attorney General Barbara Underwood, who is looking into whether the subscription-based movie ticketing service misled investors in financial matters, an anonymous source familiar with the situation told USA Today.

The attorney general is using the Martin Act, a New York anti-fraud law that protects investors and litigates issues pertaining to securities trading.

A civil lawsuit and criminal charges can be filed by the AG's office under that statue.

In a statement released to CNBC, Helios and Matheson confirmed the probe and said it was fully cooperating.

"We believe our public disclosures have been complete, timely and truthful and we have not misled investors," the statement read. "We look forward to the opportunity to demonstrate that to the New York Attorney General."

The inquiry is the latest stumble for MoviePass, which postponed a meeting with stockholders to discuss a possible reverse of stock-split vote, as was detailed in an SEC filing earlier this week, USA Today said.

Earlier this year Helios and Matheson told regulators it wanted to sell $1.2 billion in stock and debt securities after it emerged that MoviePass was burning through millions each month, CNN Business noted.

In a push to reach 5 million subscribers by the end of the year, MoviePass announced in March a new annual plan promotion that would allow customers to subscribe to its service for a year for a rate that works out to just $7.50 a month.

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MoviePass' parent company, Helios and Matheson, is under investigation by New York Attorney General Barbara Underwood, who is looking into whether the subscription-based movie ticketing service misled investors.
moviepass, new york, attorney general, investigation
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2018-26-18
Thursday, 18 October 2018 10:26 AM
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