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Ex-MoviePass Executives Sued for Fraud Following Collapse (2)

Sept. 28, 2022, 1:51 AM

Two former MoviePass Inc. executives misled investors by promising they could turn a profit charging theater-goers just $9.95 a month for unlimited tickets, the US Securities and Exchange Commission alleged in a lawsuit.

Theodore Farnsworth and Mitch Lowe were accused by the agency of securities fraud in a complaint filed late Monday in federal court in Manhattan. Farnsworth is the former chief executive officer of the analytics firm Helios and Matheson Analytics Inc., which bought MoviePass in 2017 and ran it until it collapsed into bankruptcy in 2020. Lowe was MoviePass’ CEO from 2016 to 2020.

The SEC claims ...