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The New York Attorney General is investigating MoviePass' parent company

Contributed by
Oct 18, 2018

Moviepass is making headlines once again, and as you can probably predict, the news isn't very good. After a whirlwind summer that found the company constantly trying to stay afloat, the New York Attorney General's office is launching a probe into its parent company, Helios and Matheson.

According to CNBC, the investigation is looking into whether the analytics company purposely misled the investment community regarding the company's financials. While the investigation is still in its early stages, it will reportedly be using the Martin Act, a statute implemented to protect New York's investors, as well as the integrity of the financial markets from fraud.

Helios and Matheson issued the following statement to CNBC regarding the investigations:

"We are aware of the New York Attorney General's inquiry and are fully cooperating. 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."

This is another blow to the "Netflix for movie theaters" outfit, which has had to completely reconfigure its $10/month "unlimited" movie plan and take out huge loans to stay afloat, and has been sued by its shareholders — all in the past few months.

Still, despite these issues, Helios and Matheson CEO Ted Farnsworth proclaimed just over two weeks ago that MoviePass wasn't going anywhere.

That remains to be seen, of course, but if this past summer has taught us anything, it's that no matter what, MoviePass always seems to find a way to bounce back.

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