MoviePass Gets Close Look for Securities Fraud
Perhaps some of us could have predicted how this film would end. MoviePass theatre subscriptions have plummeted over the year. Investigators are also looking at possible securities fraud by the company that caught all kinds of attention by offering moviegoers a chance to see a whole lot of films on the cheap.
The New York Attorney General late last year opened a probe into Helios and Matheson Analytics, which owns MoviePass. The state’s acting top lawyer said in a Tweet that prosecutors are looking into whether the company misled investors about MoviePass’s long-term viability.
“My office is committed to protecting New York investors and the integrity of our financial markets,” former acting Attorney General Barbara Underwood said last October. Current Attorney General Letitia James was elected in November.
MoviePass brought in new subscribers by the boatload when the company began rolling out its subscription service allowing users to see a nearly unlimited number of films for just $10 a month. Helios and Matheson has noted in communications to investors that the model may not be sustainable, the Motley Fool reports. The company tinkered with the program and drastically limited movie options of late, causing MoviePass to lose 90 percent of its 3 million customers in less than a year, according to Business Insider.
James’ offices is believed to be looking at MoviePass for possible violations of the Martin Act. The state law allows prosecutors to seek big fines in civil court without having to prove that a company actually intended to defraud investors.
How Our Investment Fraud Attorneys Can Help You
MoviePass may be a relatively unique service, but questions about whether Helios and Matheson and other companies give investors the full story are unfortunately common.
The good news is that there are a number of legal tools—at the federal and state level—that can be used to help investors get their money back and ensure that fraudsters are held accountable. Class action lawsuits can be particularly effective because they allow a wide range of fraud victims to join together to pursue legal claims.
If you or a loved one has been the subject of securities fraud, it’s important to seek the counsel of an experienced investment fraud attorney. A lawyer can help you weigh your rights and options, including whether to join a class action or opt out and pursue a separate action.
Speak With an Investment Fraud Attorney Today
At Glancy Prongay & Murray, our investment fraud attorneys have been representing people in securities, consumer and other fraud cases for more than 25 years. We have a strong track record of success in these cases.
Call us at (310) 201-9150 or contact us online to speak with an attorney today.