Mitch Lowe, the ex-CEO of MoviePass, pleaded guilty to securities fraud, admitting to misleading investors about the sustainability of the $9.95 'unlimited' movie plan.
These representations, made to inflate HMNY's stock price and attract investors, were materially false. The $9.95 plan was a temporary marketing gimmick, leading to MoviePass's financial loss.
After settling with the FTC in 2021, Lowe and former parent company CEO Farnsworth were sued by the SEC for making fraudulent claims regarding MoviePass's subscription model.
Lowe faces a $250,000 fine and up to five years in prison for his fraud plea, but a lighter sentence is anticipated due to his cooperation.
[
Collection
]
[
|
...
]