NY State Opens Investigation Into MoviePass

“MoviePass’ business model was not sustainable because there was no reasonable basis to believe MoviePass could monetize the model to a degree that could be maintained before being too buried in debt to survive,” shareholder Jeffrey Braxton argued in his suit, which seeks class action status. A significant turning point for the company came on July 27, when Helios disclosed in a regulatory filing that it couldn’t make payments to its merchants, and that resulted in a service interruption. The company’s stock plummeted, losing 96% of its value since that SEC filing.