MoviePass Under Investigation

Using the broad Martin Act, the New York state securities statute, the New York Attorney General is investigating whether MoviePass misled investors regarding its financial situation.

helios-and-matheson-moviepass

MoviePass is the wildly popular movie subscription service that has been changing its business model as it has bled cash over the past few months.

The subscription model has now been copied by the exhibitor chains as well, for example, with the AMC Stubs A-List going for $19.95 per month giving you access to 3 movies a week.

The Cinemark chain and Sinemia, founded in Turkey, also compete.

MoviePass’ company is Helios and Matheson, a (barely) public company whose stock recently traded for about 2 cents per share.

If the New York Attorney General is on the case, it’s probably a matter of time before the Securities and Exchange Commission gets involved (if it’s not already since they do not comment on open investigations).

https://www.cnbc.com/2018/10/17/cnbc-new-york-ag-launches-probe-into-moviepass-parent-company-for-allegedly-misleading-investors.html

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in balance, checkbook, Film, Investments, Jobs, Legislative Intent, review, SEC, Small Business, technology, Wall Street and tagged , , , , , , , , , , , , , . Bookmark the permalink.

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