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

If you purchased a significant amount of shares of Funko, Inc. (NASDAQ: FNKO) between October 31, 2019 and March 5, 2020, and / or if you purchased any NASDAQ: FNKO shares prior to October 2019 and continue to hold any of those shares, you have certain options and for certain investors are short and strict deadlines running. Deadline: May 11, 2020. NASDAQ: FNKO investors should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Funko
Case Name: 
Funko Shareholder Class Action Lawsuit 03/10/2020
Case Status: 
Lawsuit Filed
Affected Securities
NASDAQ: FNKO
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
03/10/2020
Class Period Begin: 
10/31/2019
Class Period End: 
03/05/2020
Court of Filing: 
U.S. District Court for the Central District of California
Deadline To File for Lead: 
05/11/2020
Summary: 

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.