MoviePass defrauded its customers by changing the terms of its subscriptions without notice, a new class action filed Nov. 21 alleges.
The subscription service provides members with tickets to see movies in theaters for a monthly fee. As of June, the service had over 3 million members.
Jackie Tabas and Katherine Rosenberg-Wohl allege that MoviePass Inc., its corporate parent Helios and Matheson Analytics Inc., and their officers conspired to breach its contracts with consumers and commit fraud through email in violation of the Racketeer Influenced and Corrupt Organizations Act.
MoviePass has struggled to find a model that allows it to be profitable, the plaintiffs argue. It removed the most desirable movies from the subscription in July and canceled the one-year subscription plan in August. It was hard to get a refund for the months remaining on customers’ subscriptions, the suit says.
Data analytics firm HMA bought a majority interest in the company in 2017, intending to sell data on the movie-going habits of subscribers, the complaint alleges.
HMA “continually took steps to protect itself at the expense of MoviePass subscribers,” it says.
MoviePass and HM didn’t respond to requests for comment.
Hershenson Rosenberg-Wohl P.C. represented the consumers.
The case is Tabas v. MoviePass, Inc., N.D. Cal., No. 18-7087, complaint filed 11/21/18.