Moviepass Lawsuit
Moviepass Lawsuit
Moviepass Lawsuit
Michael R. Reese
mreese@reesellp.com
George V. Granade
ggranade@reesellp.com
REESE LLP
100 West 93rd Street, 16th Floor
New York, New York 10025
Telephone: (212) 643-0500
Facsimile: (212) 253-4272
– against –
MOVIEPASS INC.,
Defendant.
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individually and on behalf of all others similarly situated (the “Class,” as defined below), by and
through their undersigned counsel, bring this Class Action Complaint against MoviePass Inc.
(“MoviePass” or “Defendant”) and respectfully allege as follows. Plaintiffs base the allegations
herein on personal knowledge as to matters related to, and known to, Plaintiffs. As to all other
matters, Plaintiffs base the allegations on information and belief, through investigation of
Plaintiffs’ counsel. Plaintiffs believe substantial evidentiary support exists for the allegations
1. This is a proposed class action against MoviePass, a discount movie ticket service,
for engaging in a deceptive and unfair bait-and-switch scheme. MoviePass led consumers to
allow the consumers to have “unlimited” access to tickets to movies playing in theaters, or would
allow the consumers to purchase a ticket to “any movie” in “any theater” on “any day,” up to one
movie per day. Defendant’s representations about the Subscriptions were false and misleading,
however, because the Subscriptions did not provide “unlimited” access to movie tickets and did
not provide access to tickets to “any movie” in “any theater” on “any day.” Instead, Subscription
purchasers routinely could not use their Subscriptions to obtain tickets to any movies, were faced
with only a limited selection of movies, showtimes, and theaters, or otherwise experienced
2. Plaintiffs bring this action individually and on behalf of the Class members to stop
Defendant’s unlawful practices, seeking monetary and injunctive relief and such further relief as
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PARTIES
3. Plaintiff Lawrence Weinberger resides in Sea Cliff, New York, and he has no
5. On or about March 31, 2018, Mr. Weinberger purchased a one year MoviePass
Subscription for $105.35. Mr. Weinberger paid for the full year at the time of purchase.
6. After Mr. Weinberger purchased a Subscription, MoviePass sent him a card that is
similar to a debit card or credit card (the “MoviePass Card”), which he could use to purchase movie
tickets that were paid for through his MoviePass Subscription at theaters.
8. Mr. Weinberger used the MoviePass App to search for movie tickets that he could
homepage, on which he saw Defendant’s representation that its Subscription service would provide
Defendant’s representation that a MoviePass Subscription would provide him with “unlimited”
would provide him access to tickets to “any movie” in “any theater” on “any day,” up to one movie
per day. He believed he could use the Subscription to obtain “unlimited” tickets to movies in
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12. Mr. Weinberger relied upon Defendant’s “any theater, any movie, any day”
representation and its “unlimited” representation in making his decision to purchase a full year
MoviePass Subscription for $105.35, and he would not have purchased the Subscription had he
known that, in fact, the Subscription would not provide him with access to “any movie” in “any
theater” on “any day” and would not provide him with “unlimited” access to tickets, and that,
instead, he would routinely be unable to obtain access to Subscription-based tickets to any movie
playing in a theater.
13. Mr. Weinberger paid for a MoviePass Subscription that provided access to “any
movie” in “any theater” on “any day” and provided “unlimited” access to tickets, but he received
a Subscription that did not provide him access to “any movie” in “any theater” on “any day” or
“unlimited” access to tickets. Rather, the Subscription Mr. Weinberger received routinely failed to
14. The MoviePass Subscription that Mr. Weinberger received was worth less than the
Subscription for which he paid. Mr. Weinberger was injured in fact and lost money as a result of
15. As of February 1, 2019, Mr. Weinberger has seen a total of three movies using his
MoviePass Subscription: one in May 2018, one in July 2018, and one in October 2018.
16. On numerous occasions, Mr. Weinberger was unable to see any movie using
MoviePass, although he tried to do so. When he searched for tickets using the MoviePass App, the
App would require Mr. Weinberger to select potential theaters. After he had selected theaters, the
App would state that “there are no more screenings at this theater today,” even when Mr.
Weinberger had selected up to four potential theaters. The MoviePass App routinely gave Mr.
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Weinberger the message “there are no more screenings at this theater today” in response to his
searches at various times throughout the day, including early morning, mid-morning, afternoon,
and evening.
17. Mr. Weinberger could not obtain a refund if he attempted to cancel his Subscription
prior to the end of the one year period because MoviePass does not offer pro-rated refunds to
annual subscribers.
the future, if it were true that the Subscription would provide him with unlimited access to tickets
to movies in theaters, i.e., access to tickets to any movie in any theater on any day. At present,
however, Mr. Weinberger cannot be confident that a MoviePass Subscription would provide him
with “unlimited” access to tickets to movies in theaters or with the ability to purchase tickets to
19. Plaintiff Laurie Weinberger resides in Sea Cliff, New York, and she has no
20. On or about March 31, 2018, Mrs. Weinberger also purchased a one year
MoviePass Subscription for $105.35. Mrs. Weinberger paid for the full year at the time of
purchase.
21. After Mrs. Weinberger purchased a Subscription, MoviePass sent her a MoviePass
Card.
22. Mrs. Weinberger downloaded and installed the MoviePass App on her smartphone.
23. Mrs. Weinberger used the MoviePass App to search for movie tickets that she could
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MoviePass’s homepage, on which she saw Defendant’s representation that its Subscription service
would provide access to tickets to “any movie” in “any theater” on “any day.”
Defendant’s representation that a MoviePass Subscription would provide her with “unlimited”
would provide her access to tickets to “any movie” in “any theater” on “any day,” up to one movie
per day. She believed she could use the Subscription to obtain “unlimited” tickets to movies in
27. Mrs. Weinberger relied upon Defendant’s “any theater, any movie, any day”
representation and its “unlimited” representation in making her decision to purchase a full year
MoviePass Subscription for $105.35, and she would not have purchased the Subscription had she
known that, in fact, the Subscription would not provide her with access to “any movie” in “any
theater” on “any day” and would not provide her with “unlimited” access to tickets, and that,
instead, she would routinely be unable to obtain access to Subscription-based tickets to any movie
playing in a theater.
28. Mrs. Weinberger paid for a MoviePass Subscription that provided access to “any
movie” in “any theater” on “any day” and provided “unlimited” access to tickets, but she received
a Subscription that did not provide her access to “any movie” in “any theater” on “any day” or
“unlimited” access to tickets. Rather, the Subscription Mrs. Weinberger received routinely failed
29. The MoviePass Subscription that Mrs. Weinberger received was worth less than
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the Subscription for which she paid. Mrs. Weinberger was injured in fact and lost money as a result
30. As of February 1, 2019, Mrs. Weinberger has seen a total of three movies using her
MoviePass Subscription: one in May 2018, one in July 2018, and one in October 2018.
31. On numerous occasions, Mrs. Weinberger was unable to see any movie using
MoviePass, although she tried to do so. When she searched for tickets using the MoviePass App,
the App would require Mrs. Weinberger to select potential theaters. After she had selected theaters,
the App would state that “there are no more screenings at this theater today,” even when Mrs.
Weinberger had selected up to four potential theaters. The MoviePass App routinely gave Mrs.
Weinberger the message “there are no more screenings at this theater today” in response to her
searches at various times throughout the day, including early morning, mid-morning, afternoon,
and evening.
32. Mrs. Weinberger could not obtain a refund if she attempted to cancel her
Subscription prior to the end of the one year period because MoviePass does not offer pro-rated
the future, if it were true that the Subscription would provide her with unlimited access to tickets
to movies in theaters, i.e., access to tickets to any movie in any theater on any day. At present,
however, Mrs. Weinberger cannot be confident that a MoviePass Subscription would provide her
with “unlimited” access to tickets to movies in theaters or with the ability to purchase tickets to
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35. MoviePass Inc.’s principal executive office is located at 175 Varick Street, 6th
Jurisdiction
36. This Court has personal jurisdiction over Defendant for reasons including but not
limited to the following: Plaintiffs’ claims arise out of Defendant’s conduct within New York,
including Defendant’s conduct of disseminating in New York false and misleading representations
that MoviePass Subscriptions would provide “unlimited” access to tickets to movies in theaters
and that Subscriptions would provide tickets to “any movie” in “any theater” on “any day.”
37. This Court has original subject matter jurisdiction over this proposed class action
pursuant to the Class Action Fairness Act of 2005, Pub. L. No. 109-2, 119 Stat. 4 (codified in
scattered sections of Title 28 of the United States Code), under 28 U.S.C. § 1332(d), which
provides for the original jurisdiction of the federal district courts over “any civil action in which
the matter in controversy exceeds the sum or value of $5,000,000, exclusive of interest and costs,
and [that] is a class action in which . . . any member of a class of plaintiffs is a citizen of a State
different from any defendant.” 28 U.S.C. § 1332(d)(2)(A). Because Plaintiffs bring claims on
behalf of a nationwide class and Defendant is a citizen of Delaware and New York, at least one
member of the plaintiff class is a citizen of a State different from Defendant. Further, Plaintiffs
allege the matter in controversy is well in excess of $5,000,000 in the aggregate, exclusive of
interest and costs. Finally, Plaintiffs allege “the number of members of all proposed plaintiff
Venue
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39. Film marketing executive and producer Stacy Spikes co-founded MoviePass, a
subscription-based discount movie ticket service, with entrepreneur Hamet Watt in 2011.
address. Within around 5 to 7 business days, MoviePass will then mail the consumer a MoviePass
41. To use the Subscription, the consumer must activate the MoviePass Card and
download the MoviePass App on their smartphone or other electronic device. The consumer may
then browse available theaters, movies, and showtimes on the App. If the consumer finds a theater,
movie, and showtime on the App, the consumer then travels to the theater, checks in to the
showtime on the App, and uses the MoviePass Card to purchase a ticket. The consumer may also,
42. MoviePass has offered at least three types of recurring Subscriptions: month-to-
43. Generally, MoviePass has billed consumers when they obtain their Subscriptions
and subsequently on a recurring basis until either MoviePass or the consumer terminates the
Subscription.
44. If a consumer cancels a Subscription prior to the end of the billing period,
MoviePass does not refund the consumer any portion of the money for that billing period, even in
the case of subscribers who prepaid for a full quarter or a full year.
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45. During the period from February 1, 2013, to August 5, 2018, MoviePass
systematically marketed and advertised the MoviePass Subscriptions throughout the United States
as providing consumers with “unlimited” access to tickets to movies playing in theaters, or with
the ability to purchase a ticket to “any movie” in “any theater” on “any day,” such that any United
States consumer who purchased a MoviePass Subscription was exposed to Defendant’s claim that
the MoviePass Subscriptions provide unlimited access to tickets to movies playing in theaters, on
any day.
46. Indeed, from 2011, the year MoviePass was founded, until August 5, 2018,
Defendant advertised that its Subscriptions provide “unlimited” access to tickets to movies in
theaters or that the Subscriptions would allow consumers to purchase tickets to “any movie” in
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47. As the screenshot below from the Internet Archive WayBack Machine shows, on
December 28, 2011, the MoviePass homepage stated that the company provided access to
https://goo.gl/nB6h8P.
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48. As the screenshot below shows, Defendant continued to represent that its
https://goo.gl/Q1jurr.
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from www.moviepass.com).
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50. On July 12, 2014, Defendant’s homepage indicated its Subscriptions allow access
to tickets to “ALL MAJOR MOVIES” in “ALL MAJOR THEATERS” with “NO BLACKOUT
DATES” and stated that consumers could “[s]ee a new 2D movie every 24 hours” and could “even
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51. On February 25, 2015, Defendant’s homepage again claimed its Subscriptions
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53. Defendant continued to make the same claims in 2017 as well. Internet Archive
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Subscription allows access to tickets to “ANY MOVIE ANY THEATER ANY DAY”:
55. Similarly, on January 1, 2018, MoviePass offered access to “Any Movie Any
Theater Any Day.” Internet Archive WayBack Machine, www.moviepass.com (Jan. 1, 2018),
https://goo.gl/Xq96sg.
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56. MoviePass made the same claims on February 3, 2018. Internet Archive WayBack
57. As the screenshot below shows, as of February 11, 2018, MoviePass offered access
to “Any Movie, Any Theater, Any Day,” as well as “Unlimited streaming of Fandor’s library of
5,000+ movies,” for $7.95 per month to first time subscribers who paid for a full year.
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https://goo.gl/vU6tqm.
58. As shown below, on February 24, 2018, MoviePass offered “Unlimited” access to
movies in theaters for $7.95 per month to first time subscribers who purchased a year Subscription.
https://goo.gl/bQzopk.
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59. By March 2, 2018, MoviePass had added a $9.95 “processing fee” to its offer of
“unlimited” access, for a total of $105.35 at the time of purchase, as shown below.
https://goo.gl/9d8Xmk.
Plaintiffs, with the subject “Please Read: Updates to your MoviePass Plan,” in which it announced
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a new service plan in which Subscription holders would only be able to purchase tickets to up to
three movies per month through their Subscriptions. The email stated that “[q]uarterly and annual
the MoviePass Subscriptions unequivocally demonstrate its intent to persuade consumers that the
Subscriptions provide “unlimited” access to tickets to movies in theaters and that the Subscriptions
allow consumers to purchase a ticket to “any movie” in “any theater” on “any day.”
ticket to “any movie” in “any theater” on “any day” is material to a reasonable consumer.
64. Defendant recognizes a consumer desire to see movies in theaters more often, at a
has stated:
“After years of studying and analysis, we found that people want to go to the movies
more often, but the pricing keeps going up, and that prevents them from going more.
We’re making it more affordable for people.”
Gary Guthrie, MoviePass changes its subscription plan once again: Subscribers say they’re tired
66. Defendant is well aware that claims that a MoviePass Subscription provides
67. Defendant is well aware that claims that a MoviePass Subscription allows
consumers to purchase a ticket to “any movie” in “any theater” on “any day” are material to
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consumers.
“unlimited” access to tickets to movies in theaters, and as allowing consumers to purchase a ticket
Defendant Did Not Provide “Unlimited” Access to Tickets to Movies in Theaters and
Did Not Enable Consumers with MoviePass Subscriptions to Purchase Tickets to
“Any Movie” in “Any Theater” on “Any Day”
69. Defendant’s claims are false and misleading because MoviePass did not provide
“unlimited” access to tickets to movies playing in theaters and it did not provide access to tickets
70. Rather, Plaintiffs and the Class members routinely were unable to access tickets to
any movies playing in theaters; were prohibited from purchasing tickets to certain movies through
their Subscriptions; were offered only limited movie selection, theater selection, and showtime
selection; and otherwise experienced significant difficulties in obtaining access to tickets to movies
71. When Subscription holders, including Plaintiffs and the Class members, search for
movie tickets and theaters using the MoviePass App, the App routinely states that “there are no
more screenings at this theater today,” regardless of the time of day at which the Subscription
72. The App also routinely limits the available movies, showtimes, and theaters for
which Subscription holders can purchase tickets, making it difficult to take advantage of the
Subscription service.
73. Additionally, in April 2018, MoviePass began prohibiting repeat viewings of the
same movie, thereby introducing another limit to its Subscription service and falsifying for an
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additional reason its promises to provide “unlimited” access to movie tickets and to provide access
74. In July 2018, Defendant’s CEO Mitch Lowe admitted that “certain movies may not
always be available in every theater on our platform.” Gary Guthrie, MoviePass borrows an
emergency $5 million to keep its service alive: The company continues to add caveats to its all-
caveats to its all-you-can-watch model,” including surge pricing and the company declining to
allow Subscription holders to purchase tickets to the new Tom Cruise movie (“Mission: Impossible
– Fallout”) through their Subscriptions, and that Subscription holders were having to deal with
MoviePass Card outages due to Defendant’s failure to pay its card payment processors. Id.
76. On July 30, 2018, Business Insider reported that MoviePass would be blocking
members from using its Subscription service to see major upcoming releases, including
“Christopher Robin” and “The Meg.” Jason Guerrasio, MoviePass CEO announces in all-hands
meeting that tickets to big upcoming movies will not be available on the app,
Business Insider:
A source familiar with the matter told Business Insider that during an all-hands
meeting on [July 30, 2018], MoviePass CEO Mitch Lowe said the app would not
make “Christopher Robin” and “The Meg” — the two major releases hitting
theaters in the next two weeks — available to its subscribers, and he implied that
the practice of not offering tickets to major movies would continue for the
foreseeable future.
Id.
77. In August 2018, MoviePass CEO Mitch Lowe wrote an email to Subscription
holders that admitted, “We know that at times, the frequent changes to our service have been
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frustrating to you.” Gary Guthrie, MoviePass decides on a plan that should solve its woes: The big
questions are whether the plan is sustainable and if consumers will stay onboard,
78. In the August 2018 email, Mr. Lowe stated that 85 percent of Subscription holders
79. While in the August 2018 email, Defendant’s CEO interpreted the 85 percent figure
as indicating that Subscription holders do not want to see more than three movies per month, id.,
Plaintiffs believe the truth is that most MoviePass Subscription holders, like Mr. and Mrs.
Weinberger, were not able to find tickets to more than three movies per month using the MoviePass
App due to routine messages that “there are no more screenings at this theater today” and due to
holder as follows:
“This is why I canceled #MoviePass. The constant spin & utter lack of
accountability for ANYTHING. You offered an impossible deal, people took
advantage of it, now it’s ‘unfair’ that they did so. I’m happy over at AMC A-List,
which MoviePass mocked, now offering 4x the movies,” tweeted film critic Dan
Murrell.
Gary Guthrie, MoviePass decides on a plan that should solve its woes: The big questions are
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81. An August 6, 2018, online poll indicated that 52% of consumers planned to cancel
their Subscriptions after MoviePass announced (on the same day) that Subscriptions would only
provide access to tickets to three movies per month instead of the “unlimited” access that
Now that MoviePass is $9.95 for 3 movies what will you do?, WWW.STRAWPOLL.ME (Aug. 6,
2018), https://www.strawpoll.me/16224012/r.
82. On August 10, 2018, the New York Post reported that MoviePass had limited its
Subscription movie selection to a mere two movies per day, a far cry from the “unlimited” access
it had promised. Nicolas Vega, MoviePass now forcing users to choose between two movies a day,
83. In the same article, the New York Post also reported that the MoviePass
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Subscription service had crashed for three weekends in a row, that the quality of one of the two
movies then offered was poor, and that one of the showtimes then offered was inconvenient. Id.
(“The app crash came just hours after the company quietly rolled out its latest ploy to keep users
from heading to the theaters: forcing them to choose between a terrible film and a terrible
showtime.”).
84. Consumers have complained online about Defendant’s failure to adhere to its
“unlimited” and “any theater, any movie, any day” representations. For example, one unhappy
Hi! so I’m trying to figure out (if at all) how I can actually use the service I had
subscribed for? I had signed up for the yearly enrollment which was advertised as
unlimited movies with restriction of one movie per day and no special screenings.
This soon turned into “We want you to explore different movies” ie. one movie
once which I had no issue with . . . then you guys asked to upload ticket stubs which
I adhered to. Then you guys started marking international movies as premier and
excluding those even though they were the exact same price as any other movie in
the same theater around the same time . . . this did not make sense to me. Now
rcently you said no blockbuster movies just so you can keep the cost down and
blocking most of the newly released movies which kind of beats the purpose of
what Moviepass was set out to be . . . . but fine. I really don’t mind waiting a week
or two watch the movie hence didn’t have a issue with this too but now it’s at a
point where by the time I get out of work on weekdays, all the theaters near my
house don’t have any screening for any movies. On weekends the only way to get
a ticket is to go to the theater early afternoon else it’s the same case “No screening
for the rest of the day” So I’m just trying to figure out how do you expect me to use
the service? Sure your CEO can send communication out saying you are trying to
be transparent but can you guys include the fact that user can’t really reserve any
shows for any movies by evening everyday? or as your automated system responds
asking to stick to theaters that support e-ticketing and not the large number of
theater the service had initially advertised? Just trying to figure out what the
expectation is just so I don’t feel let down yet again when I open your app! Thanks!
2018), https://goo.gl/SyZi1P.
85. For all of these reasons, Defendant misled, deceived, and confused reasonable
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consumers, including Plaintiffs and the Class members, by portraying the MoviePass
providing access to tickets to “any movie” in “any theater” on “any day,” when, in truth, the
Subscriptions did not provide “unlimited” access to tickets to movies playing in theaters and did
not provide access to tickets to “any movie” in “any theater” on “any day.”
Subscriptions on the false premise that the Subscriptions would allow them “unlimited” access to
tickets to movies playing in theaters, and the false premise that the Subscriptions would allow them
to purchase tickets to “any movie” in “any theater” on “any day,” when the consumers would not
have otherwise purchased the Subscriptions, and by inducing consumers to pay a higher price for
the Subscriptions than they otherwise would have been willing to pay.
87. MoviePass refuses to provide pro-rated refunds to Subscription holders who cancel
their Subscriptions prior to the end of the Subscription period, regardless of whether the
88. Furthermore, on September 28, 2018, MoviePass sent the email quoted below to a
“select” group of former customers who had allowed their Subscriptions to lapse and who, as a
In August 2018, we announced a new offering for three movies a month for $9.95,
giving subscribers the ability to opt-in to this plan if they wanted to continue as a
MoviePass subscriber. However, our records show that you have not yet taken any
action on the new plan, and because of that your subscription was suspended and
your monthly subscription charges have stopped.
Because we really hope you begin enjoying your MoviePass subscription again, we
have chosen you to be a part of a select test group, who beginning Friday, October
5th will be restored to unlimited movies (up to one new movie title per day based
on existing inventory) – the same subscription that you signed up for and you
previously enjoyed. If you decide that you do not want this you must “opt out”
before Thursday, October 4th at 9:00PM ET.
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To be clear, unless you opt out, your unlimited subscription will be restored and
you will begin enjoying unlimited movies again (up to 1 movie per day, based on
existing inventory) at $9.95 per month, and your credit card on file will be charged
on a monthly basis beginning Friday, October 5th, 2018.
If you do opt out of the restoration of your subscription to the unlimited plan, your
subscription will be canceled and no longer held in a “suspended” status, and you
will not be able to re-join until 9 months have passed.
In other words, if the former customers, who had allowed their Subscriptions to lapse, did not want
to be charged again on a recurring basis, MoviePass demanded they proactively opt out of the plan
that MoviePass had enrolled them in without their consent, within less than a week. Nick Statt,
MoviePass is now forcing former users to opt out of new plan or risk being charged,
WWW.THEVERGE.COM (Sept. 28, 2018, 7:27pm EDT), https://goo.gl/Y3RbEr; see also Gary
89. Plaintiffs and the Class members reasonably relied to their detriment on
Defendant’s false and misleading “unlimited” and “any movie, any theater, any day”
provide “unlimited” access to tickets to movies in theaters and that the Subscriptions would allow
consumers to purchase tickets to “any movie” in “any theater” on “any day” obscured the material
facts that Defendant failed to disclose, i.e., that the Subscriptions would not in fact provide
Plaintiffs and the Class members with “unlimited” access to tickets to movies in theaters or with
the ability to purchase tickets to “any movie” in “any theater” on “any day.”
91. Defendant’s false and misleading representations and omissions are likely to
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deceive and mislead reasonable consumers and the general public again in the future, as they have
Defendant’s Wrongful Conduct Caused Plaintiffs’ and the Class Members’ Injuries
92. As an immediate, direct, and proximate result of Defendant’s false and misleading
representations and omissions, Defendant injured Plaintiffs and the Class members in that they:
a. paid a sum of money for Subscriptions that were not what Defendant
represented;
b. were deprived of the benefit of the bargain because the Subscriptions they
purchased were different from what Defendant promised;
c. were deprived of the benefit of the bargain because the Subscriptions they
purchased had less value than what Defendant represented;
e. were denied the benefit of the “unlimited” discount movie tickets, on “any
day” to “any movie” in “any theater,” which Defendant promised.
93. Had Defendant not made the false and misleading representations and omissions,
Plaintiffs and the Class members would not have been willing to pay the same amount for the
Subscriptions they purchased, and, consequently, Plaintiffs and the Class members would not have
94. Plaintiffs and the Class members paid for Subscriptions that allowed “unlimited”
access to tickets to movies in theaters and that would allow them to purchase tickets to “any movie”
in “any theater” on “any day” but received Subscriptions that did not in fact allow them “unlimited”
access to tickets to movies in theaters and that did not in fact allow them to purchase tickets to
“any movie” in “any theater” on “any day.” The Subscriptions Plaintiffs and the Class members
received were worth less than the Subscriptions for which they paid.
95. Based on Defendant’s false and misleading representations, Defendant was able to,
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and did, charge Plaintiffs and the Class members a higher price for the Subscriptions than
Defendant would have otherwise been able to charge had Defendant not made the “unlimited” and
96. Plaintiffs and the Class members all paid money for the MoviePass Subscriptions.
However, Plaintiffs and the Class members did not obtain the full value of the advertised
Subscriptions due to Defendant’s false and misleading representations. Plaintiffs and the Class
members purchased more of, or paid more for, the Subscriptions than they would have had they
known the truth about the Subscriptions. Consequently, Plaintiffs and the Class members have
suffered injury in fact and lost money or property as a result of Defendant’s wrongful conduct.
97. Pursuant to Rule 23(a) and (b)(2) of the Federal Rules of Civil Procedure, Plaintiffs
brings this action on behalf of themselves and a proposed class defined as follows:
98. Additionally, pursuant to Rule 23(a) and (b)(3), Plaintiffs bring this action on behalf
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Plaintiffs ask the Court to adjudicate all forms of relief through the
Monetary Relief Class.
99. Additionally, pursuant to Rule 23(a) and (b)(3), Plaintiffs bring this action on behalf
Plaintiffs ask the Court to adjudicate all forms of relief through the
New York Subclass.
100. Collectively, the Injunctive Relief Class, the Monetary Relief Class, and the New
101. Plaintiffs reserve the right to alter the Class definitions as they deem necessary at
any time to the full extent that the Federal Rules of Civil Procedure, the Local Rules of the United
States District Courts for the Southern and Eastern Districts of New York, and applicable precedent
allow.
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Plaintiffs can prove the elements of the claims on a class-wide basis using the same evidence as
individual Class members would use to prove those elements in individual actions alleging the
same claims.
103. Numerosity; Rule 23(a)(1): The size of the Class is so large that joinder of all Class
members is impracticable. Due to the nature of Defendant’s business, Plaintiffs believe there are
104. Existence and Predominance of Common Questions of Law and Fact; Rule
23(a)(2), (b)(3): There are questions of law and fact common to the Class. These questions
predominate over any questions that affect only individual Class members.
105. All Class members were exposed to Defendant’s deceptive and misleading
advertising and marketing claims that their MoviePass Subscriptions would provide them with
“unlimited” access to tickets to movies in theaters and would allow them to purchase tickets to
106. Furthermore, common legal and factual questions include but are not limited to:
d. whether Defendant violated the New York consumer protection statutes set
forth below;
e. whether Defendant breached its contracts with Plaintiff and the Class
members by failing to provide them “unlimited” access to tickets to movies
in theaters and by failing to allow them to purchase tickets to “any movie”
in “any theater” on “any day”;
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f. whether Defendant breached the implied covenant of good faith and fair
dealing by failing to provide Plaintiff and the Class members with
“unlimited” access to tickets to movies in theaters and by failing to allow
them to purchase tickets to “any movie” in “any theater” on “any day”;
g. whether Plaintiff and the Class members are entitled to actual, statutory, or
other forms of damages and other monetary relief; and
h. whether Plaintiffs and the Class members are entitled to injunctive relief or
equitable relief, including equitable restitution.
Plaintiffs seek to enforce individually and on behalf of the Class members. Similar or identical
violations of law, business practices, and injuries are involved. Individual questions, if any, pale
by comparison, in both quality and quantity, to the numerous common questions that dominate
this action. Moreover, the common questions will yield common answers that will materially
108. Typicality; Rule 23(a)(3): Plaintiffs’ claims are typical of the claims of the Class
members because Defendant injured all Class members through the uniform misconduct described
herein; all Class members were subject to Defendant’s false, misleading, and unfair advertising
and marketing practices and representations, including the false and misleading claims that the
MoviePass Subscriptions provided “unlimited” access to tickets to movies in theaters and that the
Subscriptions would allow consumers to purchase tickets to “any movie” in “any theater” on “any
day”; and Plaintiffs seek the same relief as the Class members.
109. Furthermore, there are no defenses available to Defendant that are unique to
Plaintiffs.
110. Adequacy of Representation; Rule 23(a)(4): Each Plaintiff is a fair and adequate
representative of the Class because each Plaintiff’s interests do not conflict with the Class
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members’ interests.
111. Plaintiffs have selected competent counsel that are experienced in class action and
112. Plaintiffs will prosecute this action vigorously and are highly motivated to seek
redress against Defendant. Plaintiffs and their counsel are committed to prosecuting this action
113. Injunctive or Declaratory Relief; Rule 23(b)(2): The requirements for maintaining
a class action pursuant to Rule 23(b)(2) are met, as Defendant has acted or refused to act on grounds
generally applicable to the Class, thereby making appropriate final injunctive relief or
114. Superiority; Rule 23(b)(3): The class action mechanism is superior to other
available means for the fair and efficient adjudication of this controversy for reasons including but
a. The damages individual Class members suffered are small compared to the
burden and expense of individual prosecution of the complex and extensive
litigation needed to address Defendant’s conduct.
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115. Notice: Plaintiffs and their counsel anticipate that notice to the proposed Class will
include United States mail, electronic mail, Internet postings, and/or published notice.
CLAIMS
FIRST CLAIM
Violation of New York’s Consumer Protection from Deceptive Acts and Practices Act
N.Y. GEN. BUS. LAW § 349
On Behalf of the Class
116. Plaintiffs repeat each and every allegation contained in the paragraphs above and
117. Plaintiffs bring this claim on behalf of the Class for violation of New York General
118. Section 349 prohibits “[d]eceptive acts or practices in the conduct of any business,
trade or commerce or in the furnishing of any service” in New York. N.Y. GEN. BUS. LAW § 349(a).
herein, constitute “deceptive” acts and practices, and such conduct would mislead a reasonable
consumer acting reasonably in the circumstances. As discussed above, Defendant’s marketing and
advertising of the MoviePass Subscriptions misled Plaintiffs and the Class members as to whether
the Subscriptions provided “unlimited” access to tickets to movies in theaters and as to whether
the Subscriptions would allow Plaintiffs and the Class members to purchase tickets to “any movie”
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120. In accordance with subsection (h) of section 349, Plaintiffs seek an order enjoining
Defendant from continuing the unlawful deceptive acts and practices discussed above. Absent
enjoining the unlawful deceptive acts and practices, Defendant will continue its false and
misleading marketing of MoviePass Subscriptions and, in doing so, irreparably harm each of the
Class members.
121. As a consequence of Defendant’s deceptive acts and practices, Plaintiffs and the
Class members suffered an ascertainable loss of monies. By reason of the foregoing, Plaintiffs and
the Class members seek actual damages or statutory damages of $50 per violation, whichever is
SECOND CLAIM
Violation of New York’s Consumer Protection from Deceptive Acts and Practices Act
N.Y. GEN. BUS. LAW § 350
On Behalf of the Class
123. Plaintiffs repeat each and every allegation contained in the paragraphs above and
124. Plaintiffs bring this claim on behalf of the Class for violation of New York General
125. Section 350 prohibits “[f]alse advertising in the conduct of any business, trade or
commerce or in the furnishing of any service” in New York. N.Y. GEN. BUS. LAW § 350.
126. New York General Business Law section 350-a defines “false advertising” as
any employment opportunity if such advertising is misleading in a material respect.” N.Y. GEN.
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127. Section 350-a also provides that advertising can be false by omission, as it further
states that “[i]n determining whether any advertising is misleading, there shall be taken into
account (among other things) not only representations made by statement, word, design, device,
sound or any combination thereof, but also the extent to which the advertising fails to reveal facts
material in the light of such representations with respect to the commodity or employment to which
the advertising relates under the conditions prescribed in said advertisement, or under such
herein, are “misleading in a material respect,” and thus “false advertising,” as they falsely represent
that the Subscriptions provide “unlimited” access to tickets to movies in theaters and that the
Subscriptions allow Subscription holders to purchase tickets to “any movie” in “any theater” on
“any day.” Defendant’s marketing and advertising of the MoviePass Subscriptions, as alleged
129. Plaintiffs seek an order enjoining Defendant from continuing this false advertising.
Absent enjoining Defendant’s false advertising of the MoviePass Subscriptions, Defendant will be
free to continue its false and misleading “unlimited” and “any theater, any movie, any day”
representations.
130. As a direct and proximate result of Defendant’s violation of New York General
Business Law section 350, Plaintiffs and the Class members have also suffered an ascertainable
loss of monies. By reason of the foregoing, Plaintiffs and the Class members also seek actual
damages or statutory damages of $500, whichever is greater, as well as three times actual damages
if the court finds Defendant willfully or knowingly violated section 350 and punitive damages.
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THIRD CLAIM
Breach of Contract
On Behalf of the Class
132. Plaintiffs repeat each and every allegation contained in the paragraphs above and
133. Plaintiffs bring this claim on behalf of the Class for breach of contract under New
134. Under New York law, the elements of a breach of contract claim are (1) the
existence of an agreement; (2) adequate performance of the contract by the plaintiff; (3) breach of
135. Plaintiffs and the Class members, on the one hand, and Defendant, on the other,
formed an agreement concerning the MoviePass Subscriptions when Plaintiffs and the Class
136. Plaintiffs and the Class members performed all acts, conditions, covenants, and
promises to be performed on their part when they paid for the MoviePass Subscriptions.
contract described above by failing to perform its obligation under the contract, i.e., Defendant
failed to provide Plaintiffs and the Class members with access to tickets to “any movie” in “any
theater” on “any day” or with access to “unlimited” tickets to movies playing in theaters. Instead,
Plaintiffs and the Class members routinely were unable to find tickets using the MoviePass App,
were offered only tickets to a limited selection of movies in a limited selection of theaters on a
limited selection of days, or experienced significant difficulties obtaining movie tickets through
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138. As a result of Defendant’s breach, Plaintiffs and the Class members were deprived
of the benefit of the Subscription services for which they bargained and paid and, consequently,
suffered an ascertainable loss of monies. By reason of the foregoing, Plaintiffs and the Class
FOURTH CLAIM
140. Plaintiffs repeat each and every allegation contained in the paragraphs above and
141. Plaintiffs bring this claim on behalf of the Class for breach of the implied covenant
of good faith and fair dealing under New York common law, in the alternative to their claim for
142. Under New York law, the elements of a claim of breach of the implied covenant
are (1) the existence of a duty, (2) breach of that duty, (3) causation, and (4) damages.
143. Under New York law, a covenant of good faith and fair dealing in the course of
144. The implied covenant of good faith and fair dealing obligates a promisor to fulfill
any promises which a reasonable person in the position of the promisee would be justified in
145. The implied covenant of good faith and fair dealing requires that neither party do
anything which has the effect of destroying or injuring the right of the other party to receive the
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146. When a contract involves the exercise of discretion, the implied covenant of good
faith and fair dealing prohibits the party with discretion from acting arbitrarily or irrationally in
147. Implicit within any agreement that Plaintiffs and the Class members may have
entered into with respect to their MoviePass Subscriptions is a covenant by Defendant to act in
good faith and deal fairly with Plaintiffs and the Class members.
148. Defendant breached this implied covenant of good faith and fair dealing by
maliciously:
149. As a result of Defendant’s conduct as described herein, Plaintiffs and the other
Class members have suffered an ascertainable loss of monies. By reason of the foregoing, Plaintiffs
and the Class members seek compensatory damages or, alternatively, restitution.
A. certifying the proposed Class under Federal Rule of Civil Procedure 23(a), (b)(2),
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B. declaring that Defendant is financially responsible for notifying the Class members
C. declaring that Defendant has committed the violations of law alleged herein;
D. providing for any and all injunctive relief the Court deems appropriate;
E. awarding statutory damages in the maximum amount for which the law provides;
incidental, or consequential damages in an amount that the Court or jury will determine, in
G. providing for any and all equitable monetary relief the Court deems appropriate;
I. awarding Plaintiff its reasonable costs and expenses of suit, including attorneys’
fees;
J. awarding pre- and post-judgment interest to the extent the law allows; and
K. providing such further relief as this Court may deem just and proper.
Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Plaintiffs hereby demand a
trial by jury on all claims set forth above that are so triable.
REESE LLP
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ggranade@reesellp.com
100 West 93rd Street, 16th Floor
New York, New York 10025
Telephone: (212) 643-0500
Facsimile: (212) 253-4272
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