MoviePass' recent struggles are no secret, but things just got even worse.
The movie subscription service's parent company Helios & Matheson Analytics Inc. filed its quarterly earning report, revealing it ran up an operating loss of $126.6 million in the three months ending Jun. 30.
SEE ALSO:You never forget your first…big screen crush at the moviesThe loss is well up from the $2.74 million deficit racked up by the company the same time last year. Helios & Matheson said that without additional funding, it "will not have sufficient funds to meet its obligations" by Aug. 14, 2019.
To add more headaches, one shareholder has filed a class action lawsuit in the Southern District court of New York against Helios & Matheson, plus its CEO Ted Farnsworth and CFO Stuart Benson, for being misled about the company's business and prospects.
"Helios was touting MoviePass’ valuation and path to profitability even though there was no reasonable basis to even imply that the MoviePass business model could lead to profitability for Helios," reads the filing by Jeffrey Braxton, posted by Deadline.
"MoviePass’ business model was not sustainable because there was no reasonable basis to believe that MoviePass could monetize the model to a degree that could be maintained before being too buried in debt to survive."
MoviePass has already responded to its financial problems by altering its plans, limiting customers to three movies per month under the $9.95 plan from Wednesday.
Previously, users could watch one movie per day, per month. The old $7.95 plan, which also allowed customers to watch three movies a month, is no longer offered.
The changes and interruptions to its service have prompted MoviePass subscribers to cancel, but some users reported they've had their plans renewed instead.
MoviePass apologised to members who had been affected, and said it "fixed the bugs," maintaining that "none of our members have been opted-in or converted to the new plan without their express permission."
"We are in the process of transitioning our members to the new, $9.95 plan, which launches officially on August 15," a spokesperson said.
"Those who have not already done so will continue to have the choice of either opting in or canceling their membership over the course of the coming weeks. Monthly subscriptions will automatically expire for members that do not respond by the end of their billing cycle."
Additional reporting by Shannon Connellan.
(责任编辑：娛樂)
How Hyperloop One went off the railsHow the murder of a Russian official went massively viral on FacebookMillions of cows to be tagged with unique 123 friends got the whole plane to themselves and we're massively jealousNate Parker is finally thinking about the woman who accused him of rapeMajor earthquake and multiple aftershocks rock central Italy
UPDATE: Aug. 25, 2016, 8:22 a.m. BST。 Death toll is now at least 247 dead: 190 in Rieti province and
...[详细]The best 'Mega Man' games ever are going mobile
Time to make sure your phone insurance is paid up, because lots of phones are going to be hurled int
...[详细]Technology meets nature in beautiful 'Plant Your Mac' photo series
Hey, technology, it's about time you meet this thing called nature.。French artist Christophe Guinet
...[详细]Wendy's Twitter serves up a slice of sassy when their motto is questioned
Take issue with Wendy's social media team? Prepare to get burned like fresh, never frozen, North Ame
...[详细]Felix the cat just raised £5000 for charity because she's the hero we all need
LONDON -- Remember Felix, the Huddersfield train station cat who got promoted to Senior Pest Control
...[详细]How to never touch anyone ever again
Physical contact? On one hand, it's a vital form of human communication. On the other, it's terrible
...[详细]15 times Carpool Karaoke was the perfect antidote to 2016
LONDON -- 2016 has been a very bumpy, often fairly awful ride, but one thing that's remained a const
...[详细]The artist blowing people's minds in virtual reality
Upon Salvador Dali's death in 1989, the world was reminded of his unique ability to render "the unre
...[详细]Amazon's Echo made controlling music with your voice easy-peasy, but its sound quality could be a lo
...[详细]We put too much trust in algorithms and it's hurting our most vulnerable
If the past few years have taught us anything, it's that algorithms should not be blindly trusted.Th
...[详细]