Tag: execs
BBC execs defend local radio cuts to MPs
The Wall Street Journal: Adidas execs worried about risk of exposure to Kanye West years ago
Earnings Results: Sonos execs say trends have ‘stabilized,’ stock heads higher after earnings
More key Twitter execs just quit, including the head of trust and safety
Hours after news broke that Twitter lost top cybersecurity executive Lea Kissner, another round of departures deepened the company’s ongoing crisis. Platformer’s Zoë Schiffer first reported that Twitter’s Head of Trust and Safety Yoel Roth quit the company Thursday after just two weeks under Musk’s leadership. Robin Wheeler, who was elevated to lead Twitter’s marketing […]
More key Twitter execs just quit, including the head of trust and safety by Taylor Hatmaker originally published on TechCrunch
Doom Eternal composer responds to id Software exec’s “hurtful lie”, two years later
Composer Mick Gordon has published a rebuttal to an open letter by id Software executive producer Marty Stratton concerning Doom Eternal‘s soundtrack. Stratton’s post was written all the way back in May 2020, and Gordon’s response is a doozy. “Marty lied about the circumstances surrounding the DOOM Eternal Soundtrack and used disinformation and innuendo to blame me entirely for its failure,” Gordon said in the post on Medium. Gordon claims that Stratton later offered a six-figure amount if he never spoke about the matter, but Gordon insists he turned the money down.
Feds charge former MoviePass execs with securities and wire fraud
The former executives in charge of MoviePass have been indicted in what the Justice Department calls “a scheme to defraud investors.” Ex-MoviePass CEO J. Mitchell Lowe and Theodore Farnsworth, who used to be the chairman of the service’s former parent company Helios and Matheson Analytics (HMNY), have been charged with one count of securities fraud and three counts of wire fraud. Federal authorities accuse them of making materially false and misleading claims regarding MoviePass’ business in press releases, interviews and even SEC filings in a bid to artificially inflate HMNY’s stocks and entice new investors.
According to the newly unsealed court documents, Farnsworth and Lowe allegedly knew from the start that the business’ $9.95 “unlimited” plan was a temporary gimmick to attract new subscribers and, hence, artificially inflate HMNY’s stock prices. They also falsely claimed that the business model was tested to be sustainable and that it was possible to become profitable on subscription fees alone, the feds said.
In addition, the executives allegedly claimed that HMNY had “big data” and AI technologies that could be used to generate revenue for the company by analyzing data collected from MoviePass subscribers. The indictment accuses them of making the claim even though they knew that HMNY did not have the technology or the capability to monetize subscriber data.
Another allegation against the executives is that they’d made false representations that MoviePass was earning considerable money from multiple revenue streams. The business did not have a non-subscription revenue stream that would make it self-sufficient or offset its losses, according to authorities. Farnsworth and Lowe were also accused of implementing various tactics to prevent certain subscribers from being able to use their “unlimited” service. If you’ll recall, MoviePass had to settle with the FTC in 2021 over allegations that it invalidated subscriber passwords on purpose to give it sufficient reason to freeze accounts of frequent users.
In a statement made to The Verge, the spokesperson for Farnsworth said: “The indictment repeats the same allegations made by the Securities and Exchange Commission in the Commission’s recent complaint filed on September 27th against Mr. Farnsworth, concerning matters that were publicly disclosed nearly three years ago and widely reported by the news media. As with the SEC filing, Mr. Farnsworth is confident that the facts will demonstrate that he has acted in good faith, and his legal team intends to contest the allegations in the indictment until his vindication is achieved.”
The SEC sued MoviePass for fraud back in September and also accused the executives of misleading investors about the viability of the company’s $9.95-per-month business model. Despite its tumultuous past and all the accusations the former people in charge still have to face, MoviePass is back. Stacy Spikes, its original co-founder, purchased it back after HMNY filed for bankruptcy. The service relaunched in September 5th and now charges subscribers $10 a month for up to three movies, $20 a month for up to four and $30 for a maximum of five movies a month.
As for Farnsworth and Lowe, they’re now facing a maximum penalty of 20 years in prison for each count of securities and wire fraud.
Former MoviePass Execs Charged in Alleged Fraud Scheme to Boost Stocks – CNET
The execs behind the MoviePass debacle are now facing criminal charges
Mitch Lowe and Ted Farnsworth already settled with the FTC over fraudulent activity affecting MoviePass customers, and are being sued by the SEC, but now the former heads of MoviePass and its parent company, Helios and Matheson Analytics (HMNY), are facing criminal allegations of securities fraud and wire fraud.
The Department of Justice announced the charges today, saying false statements made by both men defrauded investors in HMNY when the execs pretended like the company’s money-losing $9.95 “unlimited” moviegoing plan had any hope of profitability.
Chris Bond, a spokesperson for Farnsworth, said in a statement emailed to The Verge that “The indictment repeats the same allegations made by the Securities and Exchange Commission in…