Former MoviePass executive are being sued by SEC for fraud

The Securities and Exchange Commission (SEC) filed a complaint against three of MoviePass’s previous executives prior to the company’s formal relaunch, alleging they misled the public and investors.

Mitch Lowe, the former CEO of MoviePass, and Ted Farnsworth, the former CEO of parent company Helios and Matheson Analytics (HMNY), were the targets of the SEC filing, which claimed they had lied about the company’s plans for profitability and employed “fraudulent tactics to discourage MoviePass’s heavy users from using the [unlimited subscription service].”

When Lowe and Farnsworth were in charge, MoviePass offered customers a $9.95 monthly subscription that included an endless supply of 2D movie tickets. MoviePass soon said goodbye to “unlimited,” discontinuing the programme that was probably losing a lot of money. 2020. The business declared bankruptcy in

Farnsworth and Lowe reached a settlement with the

After being accused of prohibiting users from accessing the subscription service they were paying for, MoviePass was investigated by the Federal Trade Commission.

Stacy Spikes, the company’s original founder and owner, is hoping to avoid making the same mistakes as its prior owners. An revised version of MoviePass, which Spikes is introducing, is presently undergoing beta testing in Chicago, Kansas City, and Dallas. In contrast, MoviePass will have three subscription price tiers with set limits starting at $10, $20, and $30 per month. There won’t be any such thing as unlimited viewing.

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