![]() He will remain in charge along with Stacy Spikes, MoviePass co-founder. ![]() Lowe, a Netflix co-founder and former Redbox president, has led the company since June 2016. Despite its ambitions to disrupt the industry, MoviePass remains little known. But exhibitors have preferred to bolster their own loyalty programs instead of aligning themselves with the service. The company claims it boosts attendance by 111% and that its customers buy more concessions. Established in 2011, it has gone through several iterations and has failed to get Hollywood to buy its sales pitch. MoviePass has struggled to gain traction in the industry and has often been met with ambivalence, even antipathy by theater owners. Helios and Matheson Analytics filed for bankruptcy in 2020 and later that year reached an $8.25 million settlement in a securities class action.The service is available in over 91% of all theaters in the U.S., including AMC, Regal and Cinemark theaters along with independent theaters. MoviePass does not publicly disclose its subscriber numbers. Under the FTC’s deal, the execs and the company are all barred from “misrepresenting their business and data security practices” and “must implement comprehensive information security programs” in any future corporate endeavors, which will have heavy FTC oversight. In June 2021, Helios and Matheson, Farnsworth and Lowe reached a settlement with the Federal Trade Commission in connection with allegations it deceptively marketed a “one movie per day” service but actively prevented subscribers from using the platform as advertised and that it failed to protect users’ data. ![]() Mitch remains proud of what was accomplished at MoviePass and intends to work within the legal process to resolve these allegations.” Bringing new commercial concepts to the market can be disruptive and uneven. The law firm representing Lowe, Kobre & Kim, said in a statement: “We disagree with the SEC’s characterization of Mitch’s conduct, including allegations about statements made about the progress in building MoviePass. ![]() Khalid is proud of the character and integrity he displayed throughout his time at MoviePass, and we look forward to challenging the SEC’s meritless allegations against him in court.” Farnsworth continues to maintain that he has always acted in good faith in the best interests of his companies and shareholders.”Īdditionally, Itum’s legal team shared a statement to THR that read, “Khalid Itum has been unfairly targeted by the SEC in this complaint. Farnsworth’s legal team will maintain the challenge to this complaint. It also wants the court to bar both Farnsworth and Lowe from serving as an officer or director of any company that’s required to register securities with the SEC and directly or indirectly promoting any such company.Ĭhris Bond, a spokesperson for Ted Farnsworth, on Tuesday sent The Hollywood Reporter this statement: “The complaint concerns matters subject to an investigation that the company and other news outlets publicly disclosed nearly three years ago, and Mr. The SEC is seeking a permanent injunction banning defendants from violating relevant federal securities laws, and orders requiring them to disgorge ill-gotten profits and pay civil penalties. Consequently - and through Itum’s submission of additional false documents - Itum wrongfully obtained more than $310,000 from HMNY and MoviePass for his personal benefit.” The complaint continues, “In addition to the above fraud, between January and April 2018, Farnsworth and Lowe approved false invoices that Itum, a MoviePass executive, submitted to HMNY and MoviePass. The SEC alleges the execs lied about how MoviePass could become profitable and then, when faced with dubious finances, opted to surreptitiously curb heavy use of the service instead of coming clean. Loving Loewe: Why Stars From Rihanna and Beyoncé to Dan Levy Wear the Jonathan Anderson-Designed Label
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