MoviePass Under Investigation by New York Attorney General
(NEW YORK) — The company that runs the beleaguered MoviePass discount service for theater tickets is being investigated by the New York Attorney General on allegations that it misled investors.
Parent company Helios and Matheson of New York said in a prepared statement that it is aware of the investigation, but that it believes, “our public disclosures have been complete, timely and truthful and we have not misled investors.”
The investigation was first reported by CNBC.
The company has struggled financially and is facing class action lawsuits filed on behalf of investors claiming the company failed to disclose aspects of a business model that were unsustainable.
Shares of Helios and Matheson, which is in danger of being delisted by Nasdaq because they had fallen to about a penny, plunged at the opening bell.