The New York Attorney Generals office has launched a probe into Helios & Matheson, examining whether MoviePass parent company misled investors, according to CNBC.
Investigators are looking into the companys financial disclosures, employing the Martin Act. This state anti-fraud law allows law enforcement agencies to investigate suspected securities fraud and bring civil or criminal charges.
MoviePass confirmed the investigation, saying it is cooperating with the New York Attorney Generals inquiry.
“We believe our public disclosures have been complete, timely and truthful and we have not misled investors,” Helios & Matheson said in a statement. “We look forward to the opportunity to demonstrate that to the New York Attorney General.”
This development marks another setback for MoviePass, which reported that it lost money in its June quarter and was hit by a shareholder lawsuit.
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