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  • Oct. 18, 2018, 12:40 AM
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ted farnsworth mitch lowe Getty / Dave Kotinsky / Stringer

  • The New York Attorney General has launched an investigation into the parent company of MoviePass for allegedly misleading investors, according to CNBC.
  • Helios and Matheson has faced criticism from investors in recent months as several assurances from management have unraveled and the company has diluted their stakes by selling millions of new shares to the public.
  • Many Helios and Matheson shareholders have seen the value of their stakes dwindle by over 99%, with some losing over $100,000.

New York Attorney General Barbara Underwood has launched an investigation into the parent company of popular movie-ticket subscription service MoviePass for allegedly misleading investors, according to CNBC.

The attorney general's office is probing whether Helios and Matheson (HMNY) "misled the investment community regarding the company’s financials," CNBC reported, citing a "source familiar with the matter." The investigation is in its "early stages," according to the report.

Helios and Matheson confirmed the existence of an investigation in a statement to Business Insider.

"We are aware of the New York Attorney General’s inquiry and are fully cooperating," the company said. "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."

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