MoviePass’ parent company, Helios and Matheson, is under investigation by the New York attorney general for alleged fraud.

A source familiar with the investigation informed USA Today that New York Attorney General Barbara Underwood has opened a probe into the company, though wanted to remain anonymous, as they are not authorised to speak publicly about an ongoing investigation.

The probe cites the Martin Act, a New York anti-fraud law often used to contest issues related to securities trading.

The attorney general is searching for any evidence that indicates that MoviePass misled its investors, the source said. The case is still in its early stages and no charges have been filed.