Former MoviePass execs agree to $400,000 settlement with 4 California District Attorneys' offices who had alleged 'unlawful business practices'
Summary List Placement California's Contra Costa County District Attorney's Office announced Wednesday that it entered into a negotiated settlement agreement with former MoviePass CEO Mitch Lowe and Ted Farnsworth, the former CEO of MoviePass' parent Helios and Matheson, after the DAs alleged they were "engaging in numerous unlawful, unfair, and fraudulent business acts and practices" while running the now-defunct movie theater subscription service. The DA's office said Lowe and Farnsworth would pay $400,000 in civil penalties and restitution and are prohibited from engaging in any of those allegedly illegal acts or business practices. The Contra Costa DA's office worked with three other California DA offices: Ventura, Sonoma, and San Joaquin counties. According to the settlement, which was viewed by Insider, the alleged "unlawful, unfair, and fraudulent acts and practices" included: Falsely advertising that MoviePass subscriptions offer "unlimited" movie watching. Specifically, "any movie," "any day," at "any theater," when in reality MoviePass continually added limitations to customers' subscriptions.
Former MoviePass execs agree to $400,000 settlement with 4 California District Attorneys' offices who had alleged 'unlawful business practices'
Summary List Placement California's Contra Costa County District Attorney's Office announced Wednesday that it entered into a negotiated settlement agreement with former MoviePass CEO Mitch Lowe and Ted Farnsworth, the former CEO of MoviePass' parent Helios and Matheson, after the DAs alleged they were "engaging in numerous unlawful, unfair, and fraudulent business acts and practices" while running the now-defunct movie theater subscription service. The DA's office said Lowe and Farnsworth would pay $400,000 in civil penalties and restitution and are prohibited from engaging in any of those allegedly illegal acts or business practices. The Contra Costa DA's office worked with three other California DA offices: Ventura, Sonoma, and San Joaquin counties. According to the settlement, which was viewed by Insider, the alleged "unlawful, unfair, and fraudulent acts and practices" included: Falsely advertising that MoviePass subscriptions offer "unlimited" movie watching. Specifically, "any movie," "any day," at "any theater," when in reality MoviePass continually added limitations to customers' subscriptions.