MoviePass’ parent company being investigated over fraud concerns

The New York attorney general’s office is launching an investigation into MoviePass’ parent company, Helios and Matheson, over allegedly misleading investors.

A person familiar with the investigation confirmed to The Verge that an investigation is underway. The news was first reported by CNBC. The investigation is set to determine “whether the company misled the investment community regarding the company’s financials,” according to CNBC. The attorney general’s office is using New York’s Martin Act, which was designed to protect both investors and financial institutions from fraud, to pursue the investigation.

“We are aware of the New York Attorney General’s inquiry and are fully cooperating,” a Helios and Matheson representative said…

https://www.theverge.com/2018/10/17/17991880/moviepass-fraud-investigation-attorney-general-new-york