Attorney General Investigates MoviePass

Attorney General Investigates Moviepass

The office of the New York Attorney General has reportedly launched a probe into Helios & Matheson Analytics, the parent company of movie ticket subscription service MoviePass.

Investigators are said to be utilising an anti-fraud state law known as the Martin Act, one that allows law enforcement agencies to investigate suspected securities fraud and bring civil or criminal charges

Helios & Matheson confirmed the investigation in a statement and say they’re fully co-operating with the inquiry: “We believe our public disclosures have been complete, timely and truthful and we have not misled investors. We look forward to the opportunity to demonstrate that to the New York Attorney General.”

MoviePass reported a whopping $124.6 million operating loss in its June quarter and was hit by a shareholder lawsuit, filed in August, which alleged investors suffered losses because they were misled about the company’s business and prospects.

Additionally one of its directors, economist Carl Schramm, resigned from the board in August and claimed management had withheld critical financial information and made important decisions without the board’s knowledge.

Source: CNBC (via Deadline)