Helios and Matheson Analytics Inc.

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Case Summary

Company Name
Helios and Matheson Analytics Inc.
Stock Symbol
Class Period
August 15, 2017 to July 26, 2018
Motion Deadline
October 1, 2018
Southern District of New York

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. 

Class Period: August 15, 2017 - July 26, 2018
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