RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Funko, Inc. (“Funko” or the “Company”) (NASDAQ: FNKO) securities issued in connection with Funko’s initial public offering on or about November 1, 2017.
Funko shareholders may, no later than August 27, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Funko and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
Funko is a pop culture consumer products company that sells a broad range of pop culture consumer products, featuring characters from a range of media and entertainment content, including movies, TV shows, video games, music and sports. Its products combine its proprietary brands and designs into properties it licenses from content providers.
The filed lawsuit claims that the Company’s Registration Statement and Prospectus issued in connection with the IPO were materially misleading by failing to disclose known trends in the Company’s sales and inventory.
On November 2, 2017, Bloomberg news service reported: “In Funko’s IPO prospectus, in a chart with a big arrow pointing up, the company says that an important measure of its income, which it uses to determine the success of its operational strategies, rose by an average of 86 percent in its past two full years. The actual bottom line, though, was up an average of just 16 percent in 2015 and 2016 and has turned negative lately. Funko lost just more than $10 million in the first half of this year. How the toymaker gets a loss of $10 million to reflect back as an 86 percent earnings increase is the latest example of fun-house accounting on Wall Street.”
This news drove the price of Funko shares down $4.93, or 41% below the IPO price, to close at $7.07. The IPO had been priced at $12.00 per share by underwriters just the prior day.
If you are a member of the class, you may, no later than August 27, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.