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On Wednesday, the New York Attorney General's news item opened an investigation into whether Helios and Matheson Analytics, the owner of the MoviePass movie ticket subscription service, misled investors.
Many investors were not surprised, they told Business Insider. In fact, some people wondered why it had taken so long.
One retail investor, who asked not to be identified and who was discussing his personal financial information, said that he "sent information to all the agencies that were trying to get them to watch".
Helios and Matheson denied misleading investors in a statement to Business Insider.
"We are aware of the New York Attorney General's investigation and are cooperating fully," the company said. "We believe that our public disclosures have been thorough, timely and truthful, and we have not misled investors."
Unlike most startups, which benefit from venture capital, Helios and Matheson have hedged hundreds of millions of dollars in MoviePass losses by selling new shares of its Nasdaq-listed shares to the public. This caused massive dilution for an army of passionate shareholders, many of whom saw their attendance drop by more than 99%, with several statements telling Business Insider that they had lost more than $ 100,000. According to Nasdaq, 99.96% of the shares are held by non-institutional investors.
In August, many investors told Business Insider that they felt misled about the financial situation of MoviePass by Helios and the management of Matheson, as well as the ratings of the buy-side analysts of two Wall Street companies, including banks. have imposed fees for the sale of the title (both have since suspended their coverage).
"I think the Attorney General of New York to open an investigation into the case is a very good thing," an investor said Thursday. "Thousands of people have lost a lot of money in this financial ploy and an investigation should be opened.
This sentiment was echoed by half a dozen investors contacted by Business Insider after the news announcement.
"To seek justice is a good thing," said another. "The HMNY collapse deserves an investigation.If it is found guilty of fraud or other crimes, those responsible must be punished accordingly.That is all we can hope for the moment." He said that he had lost hundreds of thousands of dollars on the stock.
Several investors expressed the hope that the company could move forward if current management was removed from office, although some acknowledged that there was little opportunity.
"Maybe it can happen [Helios and Matheson CEO Ted Farnsworth] and his toxic friends, but I doubt it, "said an investor.
"To be honest, I no longer blame the direction of HMNY," said one of them. "Waiting for good things from bad people, it's crazy." I blame myself for investing in HMNY even after experiencing Ted's past. "
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