New York AG reportedly launches investigation into MoviePass

Getty / Dave Kotinsky /
Stringer

New York Attorney General Barbara Underwood has launched an
investigation into the parent company of MoviePass for allegedly
misleading investors, according to CNBC.

The attorney general’s office is probing whether Helios and
Matheson “misled the investment community regarding the
company’s financials,” CNBC reported, citing a “source
familiar with the matter.” The investigation is in its “early
stages,” according to the report.

Neither the attorney general’s office nor the company immediately
returned requests for comment from Business Insider. 

Business Insider reported in August that Helios and Matheson had
covered heavy losses by selling new shares of stock to
shareholders and that company CEO Ted Farnsworth had made several promises to investors
at a July shareholders meeting that began to unravel soon
after.

Business Insider also interviewed Helios and Matheson
shareholders in July who expressed frustration with management.
Many had seen their stakes dwindle over 99% in value and some had
lost more than $100,000.

Developing…