SEC is suing former MoviePass executives for deceiving customers

September 28, 2022

, By Team SNFYI

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The Securities and Exchange Commission (SEC) filed a complaint against three of MoviePass’s former executives, alleging they lied to investors and the public ahead of the company’s official relaunch.

The SEC filed a complaint against former MoviePass CEO Mitch Lowe and Ted Farnsworth, the former CEO of parent company Helios and Matheson Analytics (HMNY), alleging that they lied about how the company planned to be profitable and used “fraudulent tactics to prevent MoviePass’s heavy users from using the [unlimited subscription service].” When Lowe and Farnsworth were in charge, MoviePass promised users a $9.95 per month subscription that included an unlimited number of 2D movie tickets. However, MoviePass quickly said goodbye to “unlimited,” effectively ending a service that was likely losing a lot of money. In 2020, the company declared bankruptcy.

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SEC is suing former MoviePass executives for deceiving customers

September 28, 2022

, By Team SNFYI

The Securities and Exchange Commission (SEC) filed a complaint against three of MoviePass’s former executives, alleging they lied to investors and the public ahead of the company’s official relaunch.

The SEC filed a complaint against former MoviePass CEO Mitch Lowe and Ted Farnsworth, the former CEO of parent company Helios and Matheson Analytics (HMNY), alleging that they lied about how the company planned to be profitable and used “fraudulent tactics to prevent MoviePass’s heavy users from using the [unlimited subscription service].” When Lowe and Farnsworth were in charge, MoviePass promised users a $9.95 per month subscription that included an unlimited number of 2D movie tickets. However, MoviePass quickly said goodbye to “unlimited,” effectively ending a service that was likely losing a lot of money. In 2020, the company declared bankruptcy.

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We StartupNews.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It’s possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.

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Previous News

Nigeria-based Vendease raised $30 million in Series A co-led by TLcom and Partech

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Fomo Lab launched new NFT product $FOMO token

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