Safirstein Metcalf LLP, announces that a class action lawsuit has been filed in the United States District Court Western District of Washington on behalf of persons and entities that acquired the common stock (“stock” or “shares”) of Funko, Inc. (NASDAQ:FNKO) pursuant and/or traceable to the Company’s false and/or misleading registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s November 1, 2017 initial public offering (“IPO” or the “Offering”).
If you purchased Funko stock issued in connection with the IPO and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com
If you wish to serve as lead plaintiff, you must move the Court no later than June 4, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
The 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 published an article entitled “Funko Extends Playtime to Its Accounting,” stating, among other things, that “[p]rofits . . . are slowing,” “just $7 million, or 10 percent, of Funko’s $69 million increase in adjusted Ebitda . . . was from actual earnings growth,” and questioning the Company’s claim of “intellectual property worth $250 million” which the article author claimed was “odd for a company whose main products are based on others’ intellectual property.”Following this news, Funko’s stock price closed at $7.07 per share, which was a decline of $4.93, or 41%, from the IPO price of $12.00 per share. On January 5, 2018, Funko’s stock price closed at $6.12, which was a decline of $5.88, or 49%, from the IPO price of $12.00 per share.