Helios & Matheson Analytics, the data company that owns subscription movie-going service MoviePass, said in filing with the Securities and Exchange Commission on Tuesday that it suffered a net loss of $63.4 million for the three months ending June 30. Adding insult to ever-increasing injury, shareholders are now suing the company as well.
The lawsuit, filed in New York against Helios & Matheson CEO Ted Farnsworth and CFO Stuart Benson, accuses them of defrauding shareholders by presenting misleading information about the company’s financial standing.
“Defendants carried out a plan, scheme and course of conduct which was intended to and did, deceive the investing public and cause the plaintiff and other members of the class to purchase Helios common stock at artificially inflated prices,” the suit, filed by shareholder Jeffrey Braxton’s lawyers, reads.