MoviePass' parent company Helios and zendaya sex videoMatheson is under legal probe due to a shareholder lawsuit. A source told CNBC the company will be investigated by the New York Attorney General with regard to information disclosed to investors.
SEE ALSO: MoviePass hatches a new survival plan, and it's not a good look"We are aware of the New York Attorney General's inquiry and are fully cooperating," Helios and Matheson said in a statement. "We believe our public disclosures have been complete, timely and truthful and we have not misled investors. We look forward to the opportunity to demonstrate that to the New York Attorney General."
MoviePass has become notorious for issuing constant updates to subscribers which, while transparent, have changed the nature of the subscription service sometimes week-to-week. In the past year, MoviePass has had its monthly unlimited plan, added and removed a $7.95/month plan, a quarterly plan, aspirations of IMAX ticketing and plus ones, automatic enrollment that infuriated users, three-movie limits, and has currently settled on the old unlimited model with a limited selection of movies.
As of June, Helios and Matheson had reportedly lost over $125 million through MoviePass. The disclosures have been timely, truthful, and often tiring – and the service and its subscribers look awfully different than they did in August 2017 when the service truly took off.
"Helios was touting MoviePass’ valuation and path to profitability even though there was no reasonable basis to even imply that the MoviePass business model could lead to profitability for Helios," shareholder Jeffrey Braxton said in June, when he filed the claim against MoviePass.
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