MoviePass Parent Now in Litigious Crosshairs

Misery loves company.

Helios and Matheson Analytics, the fiscally-challenged owner of theatrical ticket subscription service MoviePass, appears helpless watching its stock plummet following a 1-for-250 shares reverse-stock split engineered less than a week ago in hopes of resuscitating moribund shares.

With the stock freefalling another 45% July 30 in early trading, a New York-based law firm issued a press release soliciting investor input regarding potential litigation as to whether HMNY and certain of its officers and/or directors may have violated federal securities laws.

Specifically, Bronstein, Gewirtz & Grossman, LLC says it is investigating circumstances related to MoviePass’ July 26 service outage that necessitated an emergency $6 million loan to resume operations.

The move sent HMNY’s post-split shares into a tailspin – further angering beleaguered shareholders.

“Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients,” the law firm said in a statement.

HMNY shares, which briefly “peaked” at $21 on the morning of July 25, are currently trading at $1.18 per share