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Funko, Inc. (NASDAQ: FNKO) Investor Securities Class Action Lawsuit 03/10/2020

  • If you purchased shares of Funko, Inc. (NASDAQ: FNKO), you may have certain options. Please contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
Funko Inc
Security
NASDAQ: FNKO

Case Name
Funko Shareholder Class Action Lawsuit 03/10/2020
Type of Lawsuit
Shareholder Class Action
Court of Filing
U.S. District Court for the Central District of California

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Summary

March 25, 2021 - A second amended consolidated complaint was filed.

February 25, 2021 - The court granted the defendants' motion to dismiss. The plaintiffs were given leave to amend the complaint.

October 2, 2020 - A motion to dismiss the amended consolidated complaint was filed.

July 31, 2020 - An amended consolidated complaint was filed.

March 10, 2020 - An investor in shares of Funko, Inc. (NASDAQ: FNKO) filed a lawsuit in the U.S. District Court for the Central District of California over alleged violations of Federal Securities Laws by Funko, Inc. in connection with certain allegedly false and misleading statements made between October 31, 2019 and March 5, 2020. Funko, Inc. reported that its annual Total Revenue rose from $516.08 million in 2017 to $686.07 million in 2018 and that its Net Income increased from $4.42 million in 2017 to $7.46 million in 2018.

On February 5, 2020, Funko, Inc. reported preliminary financial results for the fourth quarter ended December 31, 2019. Net sales are expected to be approximately $214 million, a decrease of 8% compared to $233 million in the fourth quarter of 2018. The sales fell well below average analyst estimates of $264.29 million. On a third-quarter conference call, the Company CFO, Jennifer Jung, stated, we are maintaining our guidance ranges, we laid out on the second quarter conference call.

On March 5, 2020, Funko, Inc. announced its fourth quarter and full year 2019 financial results. Therein, Funko affirmed that net sales for fourth quarter had decreased 4% year-over-year to $213.6 million due to, among other things, “softness at retail during the holiday season which led to a decrease in orders.”

According to the complaint the plaintiff alleges on behalf of purchasers of Funko, Inc. (NASDAQ: FNKO) common shares between October 31, 2019 and March 5, 2020, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between October 31, 2019 and March 5, 2020, the Defendants failed to disclose to investors that Funko was experiencing lower than expected sales, that, as a result, Funko was reasonably likely to incur a writedown for slower moving inventory, and that that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.