Amidongoing dramaover MoviePass’consistent flailingand cutbacks on its once straight-out monthly movie - going subscription under fiscal press , it come along things just got even more complicated for the beleaguered e - ticketing startup . MoviePass parent company Helios and Matheson Analytics , Inc. is now under investigating for allegedly misdirect its investor about its financial wellness , a claim the company denies .
“ We are aware of the New York Attorney General ’s inquiry and are fully cooperate , ” a spokesperson for Helios and Matheson told Gizmodo in a statement . “ We conceive our public disclosure have been complete , timely and true and we have not misled investor . We look forward to the chance to demonstrate that to the New York Attorney General . ”
A representative for New York Attorney General Barbara Underwood did not like a shot return a request for comment .
The probe was first describe Wednesday byCNBC , which claim the investigation was in the “ early level ” and mention an soul with noesis of the situation . harmonize to CNBC , “ The attorney general is using the Martin Act , a statute designed to protect New York investors and the wholeness of the financial securities industry from fraudulence . ”
For month , all signs have indicated that MoviePass is , well , not doing super raging . It has restricted its users now to a $ 9.95 monthly subscription design with accession to only three movies a month with limited selection — a far cry from itsone - a - day offeringof smash hit smasher during even peak moviegoing hr for the same price . In September , MoviePasssent emailsto what it called a “ prize mental test chemical group ” of its former customer informing them they if they did not opt - in for its new plan , their accounts would be automatically be re - activated .
Helios and Matheson postedhuge quarterly lossesin August and was looking at a shareholder lawsuit that impeach chief operating officer Ted Farnsworth and CFO Stuart Benson of rook shareholders . The same month , Economist Carl Schramm quit from Helios and Matheson ’s board of directors . Specifically cover Farnsworth in anopen alphabetic character , Schramm said that he had for month “ raise questions and extract concerns about the bodied brass ” of the company . He also claimed the company ’s management “ withheld textile selective information from the Board for several months . ”
[ CNBC ]
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