The New York Attorney General's Office begins a search for misleading investors for MoviePass parent companies, Helios and Matheson.
A person familiar with the survey confirmed The Verge is under investigation. CNBC first reported this news. According to CNBC, the survey will determine whether the company has misled the company's financial investment community. The Attorney General's Office uses the New York Martin Act, which is designed to protect investors and financial institutions from fraud and to investigate.
This is another issue that is having trouble with theater subscription service. The Wrap reported that Helios and Matthewson "reported when shareholders who had indicted them to attract plaintiffs and other members expressed similar concerns. Artificially inflated "
Consumers lost faith in their company and rocky business. Subscription pricing, removing participating theaters from the show, limiting the number of movies that people can view each month, and limiting the types of movies that MoviePass members can watch are all the latest customer issues. month.
The company's second quarter earnings report this year suggested a major financial problem for the company. Operating loss increased from $ 3 million in the third quarter last year to $ 126.6 million in the prior quarter. Including $ 219 million in the second quarter of 2018 and other dismal results, including a figure that proves that only $ 514 million of assets remain.
The lawyer communicated a statement on the investigation of the Attorney General to Helios and Ms.