Ex-MoviePass CEO Mitch Lowe Pleads Guilty to Securities Fraud

Lowe admits to misleading investors about the sustainability of the $9.95 'unlimited' movie plan, facing up to five years in prison.

Mitch Lowe, former CEO of MoviePass, pleaded guilty to securities fraud for deceiving investors about the viability of the company's $9.95 'unlimited' movie ticket plan.
Lowe admitted that the plan was a short-term gimmick to attract subscribers and inflate the stock price of MoviePass's parent company, Helios and Matheson Analytics.
The fraudulent scheme led to the company's bankruptcy in 2020, with losses estimated at over $300 million.
Lowe faces up to five years in federal prison, but is expected to receive a lighter sentence for cooperating with the investigation.
Ted Farnsworth, former CEO of Helios and Matheson, remains in custody and is scheduled for trial in March 2025 on similar charges.