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The New York Attorney General's Office has launched an investigation to determine whether MoviePass' parent company, Helios and Matheson, misled investors about their finances, a news source close to the survey told ABC News.
Attorney General Barbara Underwood opened the investigation under her authority to protect investors in publicly traded companies on stock exchanges located in New York.
CNBC, which released the survey for the first time, said the investigation fell under the Martin Act of New York, an anti-fraud law.
AP
Helios and Matheson, who acquired a controlling stake in MoviePass in August 2017, announced that the price of this product would be lowered to $ 10 per month. Subscribers were allowed to view a standard 2D movie per calendar day in all participating venues, including major channels such as AMC and Regal.
"We are aware of the New York Attorney General's investigation and are cooperating fully," the company said in a statement delivered to CNBC. "We believe that our public disclosures have been thorough, timely and truthful and we have not misled investors. We look forward to the opportunity to demonstrate this to the New York Attorney General. "
The company's stock price collapsed in 2018. Helios and Matheson ended the day on Wednesday at just 20 cents a share, after peaking at $ 2,443.50 on Jan. 23. The title had dropped by half before mid-January. February and under $ 100 by June 5th.
AP
MoviePass began applying various restrictions to its service earlier this year. In April, the company no longer allowed subscribers to watch the same movie more than once. MoviePass has installed state-of-the-art pricing, a supplement for any movie considered to be in high demand, in July.
Peak pricing was suspended the following month when the company changed its monthly subscription to allow only three movies per month.
"MoviePass reserves the right to change or modify the service or subscriptions at any time and in its sole discretion," said the company in its most recent Terms of Use, "including, but not limited to To limit, applicable prices, at any time and without notice. . "
The AMC theater chain launched its own subscription service, A-List, in July. With this service, users can see up to three movies a week, including those in 3D and IMAX. Unlike MoviePass, A-List subscribers can reserve seats on the mobile app before the specified broadcast time.
The New York Attorney General's office declined to comment.
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