Helios and Matheson Analytics Inc. (Nasdaq: HMNY)
A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Helios and Matheson Analytics Inc. (Nasdaq: HMNY) publicly traded securities during the period between August 15, 2017 to July 26, 2018 (the “Class Period”).
The complaint charges Helios and certain of its officers with violations of the Securities Exchange Act of 1934. Helios is a provider of information technology, services and solutions, including a range of technology platforms focusing on big data, business intelligence and consumer-centric technology. In August 2017, Helios announced it was acquiring a majority stake in MoviePass, a subscription service that allows subscribers to see unlimited movies in theaters without a contract for a flat monthly fee ($9.95 per month at the time of the announcement).
The complaint alleges that throughout the Class Period, defendants made false and misleading statements and/or failed to disclose adverse information regarding Helios’ business and prospects, including that while Helios was touting MoviePass’s valuation and path to profitability, MoviePass's business model was not sustainable and, consequently, Helios would run out of cash in the near future. As a result of these false statements and/or omissions, the price of Helios common stock was artificially inflated to over $8,200 per share during the Class Period.
Then, on July 28, 2018, Helios announced in a Form 8-K filed with the SEC that it had issued a demand note in the principal amount of $6.2 million because it was unable to make required payments to its merchants and fulfillment processors. According to the Form 8-K, if the Company “is unable to make required payments to its merchants and fulfillment processors, the merchants and fulfillment processors may cease processing payments for MoviePass, . . . which would cause a MoviePass service interruption. . . . Such service interruption could have a material adverse effect on MoviePass’ ability to retain its subscribers.” On this news, the price of Helios stock declined $4.83 per share, or more than 70%, to close at $2.00 per share on July 27, 2018.
If you are a current shareholder and/or purchased stock between August 15, 2017 to July 26, 2018, and would like to discuss your options of exercising your rights as a shareholder, please contact us.
Please submit the following information so we can determine if you qualify for the suit. If you don't know all the specific details, partial information is also acceptable.
Please Note: Neither the submission to nor the receipt of information by The Law Offices of Marc S. Henzel or one of its attorneys through this website constitutes an agreement by the firm to represent the individual and does not create an attorney-client relationship.