Chang v. Helios Matheson Analytics, Inc., et al 1:18-cv-06965 — On August 2, 2018, investors sued Helios Matheson Analytics, Inc. (Helios, HMNY, or the Company) in United States District Court, Southern District of New York. The HMNY Lawsuit alleges that plaintiffs acquired Helios stock at artificially inflated prices between August 15, 2017 and July 26, 2018 (the “Class Period”). They are now seeking compensation for financial losses incurred upon public revelation of the Company’s alleged misconduct during that time. For more information on the HMNY Class Action, please contact us today!
Summary of the Allegations
According to its website, Helios (NASDAQ:HMNY) is “a Big Data company that helps global enterprises make informed decisions by providing insights into social phenomena.”
As such, it provides “information technology, services and solutions” including numerous “technology platforms” to its clients in the financial sector, healthcare, retail, education sector and government sector.
The Company is incorporated in Delaware and its main office is located in New York City. According to the August 2 complaint, the Company had more than 82.6 million shares of common stock outstanding as of May 11, 2018.
Summary of Facts
Helios and two of its senior officers and/or directors (the “Individual Defendants”) now stand accused of deceiving investors by lying and withholding critical information about the Company’s business practices during the Class Period.
Specifically, they are accused of omitting truthful information about various issues related to its acquisition of a “major stake” in MoviePass, Inc. (“MoviePass”) from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Helios stock to trade at artificially inflated prices during the time in question.
The truth came out on July 27, 2018, when the Company filed a form with the SEC announcing 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 leading to a service interruption.”
A closer look…
As alleged in the August 2 complaint, the Company and/or Individual Defendants repeatedly made false and misleading public statements during the Class Period.
For instance, in a press release issued when the Class Period began, the Company said in pertinent part: “The MoviePass app enables subscribers to see unlimited movies in theaters with no blackout dates; no contracts; just a low flat $9.95 monthly fee.”
In another press release issued September 15, 2017, Helios also said in pertinent part: “Helios and Matheson Analytics believes its technology stock combined with the MoviePass business model will transform the movie going experience and create great value for both companies.”
Then, on October 24, 2017, Helios issued yet another press release in which it stated in pertinent part: “The continued growth trajectory exceeded MoviePass’ initial projections, and now MoviePass projects that it will acquire at least 3.1 million additional paying subscribers through August 18, 2018, exceeding its previous estimate of 2.5 million subscribers.”
Impact of the Alleged Fraud on Helios’ Stock Price and Market Capitalization
|Closing stock price prior to disclosures:
|Closing stock price the trading day after disclosures:
|One day stock price decrease (percentage) as a result of disclosures:
The following chart illustrates the stock price during the class period:
Actions You May Take
If you have purchased shares during the Class Period, you may join the class action as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole.
NOTE: The deadline to file for lead plaintiff in this class action is October 1, 2018. You must file an application to be appointed lead plaintiff prior to this deadline in order to be considered by the Court. Typically, the plaintiff or plaintiffs with the largest losses are appointed lead plaintiff.
In order to identify your potential exposure to the alleged fraud during the time in question, you may wish to perform an analysis of your transactions in Helios common stock using court approved loss calculation methods.
Recently Filed Cases
Listed below are recently filed securities class action cases being monitored by us, along with the class period and the deadline to file a motion to be appointed as the Lead Plaintiff in the action. Please contact us if you would like an LK report for any of these cases:
Levi & Korsinsky is a leading securities litigation firm with a hard-earned reputation for protecting investors’ rights and recovering losses arising from fraud, mismanagement and corporate abuse. With thirty attorneys and offices in New York, Connecticut, California and Washington D.C., the firm is able to litigate cases in various jurisdictions in the U.S., England, and in other international jurisdictions.
Levi & Korsinsky provides portfolio monitoring services for high-net worth investors and institutional clients. Our firm also assists investors in evaluating whether to opt-out of large securities class actions to pursue individual claims.
For additional information about this case or our institutional services, please contact us.