MoviePass Parent Company Under Investigation For Fraud

October 18, 2018
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It really is true.  What seems too good to be true, usually is.

When MoviePass debuted, it seemed like a dream come true.  Under $10 a month to see a free movie every day?!  It seemed crazy!  It was. How can something like this last? It didn't.

MoviePass quickly shifted the terms of its subscription plan in an attempt to recoup massive losses, which included limiting the selection of movies eligible to be seen, raising the monthly prices, and restricting the number of films that could be seen per month.

Now, MoviePass has another problem on their hands.  A MAJOR problem.

New York Attorney General Barbara Underwood is now investigating Helios and Matheson, the parent company of MoviePass, on suspicion they misled their investors regarding the company's finances.

The investigation is in the earliest of stages, but this is the opposite of what MoviePass needs right now. This past August, Helios and Matheson reported a loss of $100 million the second quarter, resulting in its stock losing practically all its value.

Via CNBC