Helios and Matheson Analytics Inc (NASDAQ:HMNY), the parent company of MoviePass, is the subject of a probe by New York Attorney General Barbara Underwood, CNBC quoted a source familiar with the matter in a report.
The attorney general's office is investigating whether the company misled the investment community regarding the company's financials, the source said. The investigation is in its early stages.
The attorney general is using the Martin Act, a statute designed to protect New York investors, the report said.
A spokesperson for Helios and Matheson declined to comment.
Shares of Helios closed on Wednesday up 3.63% at US$0.02. They fell 5% in after-hours trade at US$0.019.
Helios and Matheson Analytics is a provider of information technology services and solutions, offering a range of technology platforms focusing on big data, artificial intelligence, business intelligence, social listening and consumer-centric technology.
The company is based in New York City.
Reporting by Rene Pastor, contactable on [email protected]