The New York Attorney General is investigating MoviePass' owner for allegedly misleading investors

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New York Attorney General Barbara Underwood has launched an investigation into the parent company of MoviePass for allegedly misleading investors, according to CNBC.

The attorney general's office is probing whether Helios and Matheson "misled the investment community regarding the company's financials," CNBC reported, citing a "source familiar with the matter." The investigation is in its "early stages," according to the report.

Neither the attorney general's office nor the company immediately returned requests for comment from Business Insider.

Business Insider reported in August that Helios and Matheson had covered heavy losses by selling new shares of stock to shareholders and that company CEO Ted Farnsworth had made several promises to investors at a July shareholders meeting that began to unravel soon after.

Business Insider also interviewed Helios and Matheson shareholders in July who expressed frustration with management. Many had seen their stakes dwindle over 99% in value and some had lost more than $100,000.

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