SEC sues MoviePass executives for lying about its completely unsustainable business model

The original, now-defunct MoviePass card. | Photo by Bryan Bishop / The Verge The US Securities and Exchange Commission (SEC) has sued three executives involved with MoviePass, alleging they lied repeatedly about whether their subscription service could become profitable. Former MoviePass CEO J. Mitchell Lowe and Theodore Farnsworth — former CEO of majority stakeholder Helios and Matheson Analytics Inc. — allegedly made false claims to the public and in regulatory filings, attempting to conceal the subscription theater ticket service’s dire economic prospects. That included falsely claiming that heavy users had tripped security flags or been randomly selected for extra measures to stop them from using MoviePass, when in reality, these users were simply putting stress on an unsustainable business model. “Faced with... Continue reading…