Gene Maddaus-Senior film testing SEC Gene Maddaus-Senior

Former MoviePass Execs Accused of Fraud by SEC

Reading now: 684
variety.com

Gene Maddaus Senior Media Writer MoviePass was founded on a lie, the Securities and Exchange Commission alleged in a complaint filed on Monday night.

The company introduced its $9.95-a-month, all-you-can-watch subscription plan in August 2017. According to the complaint, executives Theodore Farnsworth and Mitch Lowe knew that the offer was just a “marketing gimmick” and that the price was unsustainably low.

But in public, they claimed that they had done rigorous market testing and determined they could turn a profit. In fact, they had done no testing, the SEC said.

Asked by Variety if the company would eventually have to raise its prices, Farnsworth said, “The answer is no.” Critics, he went on, “don’t understand our business model.” Helios and Matheson Analytics, the parent company of MoviePass, would go bankrupt after burning through hundreds of millions of dollars.

Read more on variety.com
The website celebsbar.com is an aggregator of news from open sources. The source is indicated at the beginning and at the end of the announcement. You can send a complaint on the news if you find it unreliable.

Related News

DMCA