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New York AG launches probe into MoviePass parent company for allegedly misleading investors

Sara Salinas
  • It's another stumble for MoviePass, which in recent months has repeatedly adjusted its movie subscription plans and taken out hefty loans to cover massive losses.

The New York Attorney General Barbara Underwood has opened a probe into MoviePass parent company Helios and Matheson HMNY , a source familiar with the matter told CNBC.

The attorney general's office is investigating whether the company mislead the investment community regarding the company's financials, the source said. The investigation is in the early stages.

The attorney general is using the Martin Act, a statute designed to protect New York investors.

It's another stumble for MoviePass, which in recent months has repeatedly adjusted its movie subscription plans and taken out hefty loans to cover massive losses.

Shares of Helios and Matheson fell 3 percent in extended trading Wednesday, though the stock trades for just 2 cents per share. A spokesperson for Helios and Matheson declined to comment.

This story is developing. Please check back for updates.




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