A MoviePass investigation is officially underway

The parent company of MoviePass, Helios and Matheson, is under judicial investigation due to legal action by its shareholders. A source told CNBC that the New York Attorney General would investigate the company regarding the information provided to investors.

"We are aware of the New York Attorney General's investigation and are cooperating fully," said Helios and Matheson in a statement. "We believe that our public disclosures have been thorough, timely and truthful, and we have not misled investors and we look forward to the opportunity to demonstrate this to the New York Attorney General."

MoviePass is known for publishing consistent updates to subscribers who, although transparent, have sometimes changed the nature of the subscription service week after week. In the past year, MoviePass has had its monthly unlimited bundle, added and removed a $ 7.95 / month package, a quarterly bundle, IMAX and other ticketing aspirations, automatic registration that made users furious, the limit of three films, and adopted the old unlimited model with a limited choice of films.

By June, Helios and Matheson would have lost more than $ 125 million via MoviePass. The disclosures were punctual, truthful and often tiring – and the service and its subscribers look terribly different from what they were in August 2017, when the service really took off.

"Helios praised MoviePass's valuation and profitability path even though there was no reasonable basis for suggesting that the MoviePass business model could be profitable for Helios," said stockholder Jeffrey Braxton in June, when he had filed his complaint against MoviePass.