SEC sues former MoviePass executives for fraud

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The Securities and Exchange Commission has sued former top executives at MoviePass and its parent company, Helios & Matheson HMNY, , for fraud. The complaint, filed Monday in the U.S. District Court for New York’s southern district, alleges Ted Farnsworth and Mitch Lowe “intentionally and repeatedly disseminated to the public materially false or misleading statements concerning MoviePass and key aspects of MoviePass’s business model.” The suit charges Farnsworth and Lowe misled investors by suggesting the company could profit by offering all-you-can eat moviegoing for $9.95 a month. Farnsworth is the former chief executive of analytics firm Helios & Matheson Analytics Inc., which acquired MoviePass in 2017 and ran it until it sank into bankruptcy in 2020. Lowe was MoviePass CEO from 2016 to 2020.

This article was originally published by Marketwatch.com. Read the original article here.

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