HMNY stock is taking a beating today on news that the MoviePass owner is facing a fraud investigation.
The investigation into Helios and Matheson Analytics (NASDAQ:HMNY) comes from New York Attorney General Barbara Underwood. The attorney general is using the Martin Act to investigate the company for possibly misleading investors of HMNY stock.
The MoviePass owner says that it is indeed aware of the investigation from New York Attorney General Barbara Underwood. It notes that it is fully cooperating with the attorney general’s office’s efforts.
“We believe our public disclosures have been complete, timely and truthful and we have not misled investors,” Helios and Matheson Analytics told CNBC.”We look forward to the opportunity to demonstrate that to the New York Attorney General.”
Reports says that this investigation is still only in the early phases, which means there isn’t much to know about it yet. However, any investors that are sticking with the MoviePass owners will want to keep an eye on it for the sake of their HMNY stock.
The last year has been far from anything good for the MoviePass owner. It has been plagued by funding issues, heavy losses and just about everything a company hopes to avoid. This has of course been bad for HMNY stock, which has lost more than 99% of its value since the start of the year.
HMNY stock continues to lose value as of Thursday morning by dropping another 12% from its Wednesday closing price of just 2 cents.