It only takes a quick glance at the news to see just how common securities fraud has become. This type of fraud can affect anyone who invests, too, regardless of the amount of wealth that they’ve accumulated.
Not even well-known entities are necessarily safe investments, as is shown by the recently filed securities fraud charges levied against executives from the once-popular MoviePass.
The allegations
According to reports, two former executives from MoviePass are facing securities fraud allegations for allegedly misleading investors about the business’s stability, sustainability, and its business model.
The business, which focused on providing moviegoers with unlimited movie tickets in exchange for a monthly fee, became wildly popular just a few years ago, with subscription rates exceeding 3 million people. But with that popularity came increased expenses that the business wasn’t able to handle.
Despite the financial woes that the business was facing, investigators allege that the executives told investors that their business approach was market-tested and that the artificial intelligence that they were utilizing to assist in their business strategy provided long-term viability.
Prosecutors argue that these claims were blatant lies, and that the executives actually tried to block subscribers from using the service in order to save money.
What this means for you
Given the frequency with which securities fraud occurs, you shouldn’t be embarrassed or ashamed if you’ve been taken advantage of by an unethical broker or other investment professional. Instead, you should try to get justice.
The best way to do this is to take legal action and build persuasive legal arguments that are supported by the facts and the law. If you want help being proactive in that manner and protecting your interests, then consider discussing the circumstances of your case with an attorney who has proven themselves effective in this area of the law.