![]() The move attracted millions of subscribers and helped turn Helios and Matheson into a popular stock with retail traders. Farnsworth, then the CEO of the parent company, dropped the monthly subscription price, which allowed subscribers to see a movie at any theater once a day, from $50 to $10. The movie-subscription service was acquired in 2017 by Helios and Matheson Analytics. The Farnsworth playbookįarnsworth sports a friendly grin and seemingly boundless enthusiasm for what he is hocking at a given moment, which has included a psychic hotline promoted by La Toya Jackson in the 1990s and a beverage company in the early 2000s.īut it was MoviePass that really moved Farnsworth into the spotlight. "These guys planned to take down the company," referring to Farnsworth and his allies. Vick has also sued two hedge funds that invested in Vinco in a complaint that alleges they made "predatory loans" to the company. Vick is part of a shareholder group that filed a lawsuit, which has since been dismissed, against Farnsworth and several other current and former Vinco leaders, including Farnsworth's romantic and business partner Roderick Vanderbilt, who's still the chairman of the company. The shares are now worth less than a cent each. He holds 11,825 shares that he bought at an average price of $41.68, reflecting the results of a 2022 spinoff and a 2023 reverse split before the stock got delisted. "It's the most money I've ever lost in my life," said Shadwrick Vick, an investor who goes by Retail Rudy online and lost about $500,000 on his investment in Vinco. ![]() Farnsworth is also facing several lawsuits tied to Vinco. He has pleaded not guilty and is awaiting trial. He was charged in November 2022 with securities fraud, with the government alleging he defrauded investors in MoviePass' parent company, Helios and Matheson Analytics. Vinco may be Farnsworth's last corporate collapse. "You need a guy who's willing to go onstage and tell a story and get investment in the stock." Barnum," John Fichthorn, a hedge-fund manager, told BI. ![]() The insiders and court records described a strategy in which Farnsworth would get involved with a publicly traded company, help raise funding from his finance connections at favorable terms for them, and drive up the company's stock with splashy announcements. ![]() Most of the insiders asked to remain anonymous for fear of professional repercussions, though BI has confirmed their identities and employment. To understand Farnsworth's tactics, Business Insider spent months interviewing 11 insiders close to Vinco and Farnsworth and reviewing hundreds of pages of internal documents, public company filings, and lawsuits. Each public company saw a massive stock-price increase before crashing. Over the past 20 years, Farnsworth has been involved with over 20 different businesses and taken control of several publicly traded companies, the most recent of which was Vinco. The Ted Farnsworth playbook appeared to be set in motion once again. Ted Farnsworth, Maria Bartiromo, and a Zash cofounder Jaeson Ma on Fox Business.īehind the scenes, the hedge fund Hudson Bay Capital, a key financer of MoviePass' parent company, had quietly made its first investment in Vinco.
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