An investor in shares of Funko Inc (NASDAQ:FNKO) filed a lawsuit in the U.S. District Court for the Western District of Washington over alleged violations of Federal Securities Laws by Funko Inc in connection with certain allegedly false and misleading statements made in connection with Funko’s initial public offering (“IPO”) on or about November 1, 2017.

According to the complaint the plaintiff alleges on behalf of purchasers of the securities of Funko, Inc. (NASDAQ:FNKO) pursuant to and/or traceable to the Registration Statement and Prospectus issued in connection with Funko’s initial public offering on or about November 1, 2017, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that the documents filed in connection with the IPO contained materially false and/or misleading statements and/or failed to disclose that: (1) Funko’s profits and growth were not as positive as Funko represented; (2) Funko’s business model and customer base had not insulated it from adverse industry, sales, and earnings trends; and (3) as a result, defendants’ statements in the Registration Statement regarding Funko’s business, operations and prospects were materially false and/or misleading. When the true details entered the market, the lawsuit claims that investors suffered damages.

Everett, WA based Funko, Inc. is a pop culture consumer products company. Funko Inc reported that its annual Total Revenue rose from $274.06 million in 2015 to $426.72 million in 2016 and that its Net Income increased from $11.94 million in 2015 to $26.88 million in 2016.

Funko Inc went public in early November 2017 and its shares reached as high as $8.71 per share in early December 2017.

Since then Funko Inc has faced media scrutiny concerning what one outlet referred to as “fun-house accounting.”