Moviepass

MoviePass Announces $126 Million Loss, Slapped With Class Action Suit

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NEWYORK (CelebrityAccess) MoviePass parent company Helios and Matheson closed today at 5 cents a share, just as the company announced a $126.6 million loss for the most recent quarter ending June 30 and as a class action lawsuit was made public.

Helios & Matheson (HMNY) recently took out a $6 million loan after failing to function properly Aug. 9, which happened to be the night before the launch of “Mission Impossible – Fallout.” It’s stock plummeted after a 250-1 reverse stock split and, n ow, the company reported a massive quarterly loss.

The lawsuit was filed by shareholder Jeffrey Braxton in federal district court in New York yesterday on behalf of hundreds, maybe thousands, of investors who have suffered losses, according to Deadline Hollywood.

“False and misleading statements or material omissions … caused the damages suffered by [Braxton] and the other class embers,” the suit contends.

The full suit is available here.

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