SAN DIEGO–(BUSINESS WIRE)–The law firm of Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Funko, Inc. (NASDAQ: FNKO) common stock on a U.S. open market between May 6, 2022 and March 1, 2023, both dates inclusive (the “Class Period”) have until August 1, 2023 to seek appointment as lead plaintiff of the Funko class action lawsuit. Captioned Studen v. Funko, Inc., No. 23-cv-00824 (W.D. Wash.), the Funko class action lawsuit charges Funko and certain of its current and former top executives with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Funko class action lawsuit, please provide your information here:
CASE ALLEGATIONS: Funko is a pop culture consumer products company that creates vinyl figures, action toys, plush accessories, apparel, and homewares relating to movies, TV shows, video games, musicians, and sports teams. During the Class Period, Funko promoted both the planned move of Funko’s distribution center from Everett, Washington to Buckeye, Arizona as well as the planned upgrade of Funko’s enterprise resource planning (“ERP”) software system.
The Funko class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) Funko was experiencing significantly larger delays in implementing its ERP software than it was disclosing to investors; (ii) having moved into a new warehouse without functioning ERP software in place would lead to dramatically higher costs and poorer inventory management practices; and (iii) Funko’s inability to efficiently operate the new distribution center would have a substantial, undisclosed impact on Funko’s earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margin.
On August 4, 2022, Funko held an earnings call with analysts and explained that it had “recently made the difficult decision to delay the remaining [ERP implementation] steps until 2023,” noting that Funko “did not want to impair the momentum that we have today by shifting to a platform that we felt wasn’t yet fully ready to support our business.” On this news, the price of Funko stock declined more than 18%.
Then, on November 3, 2022, Funko reported earnings per share that badly missed analyst estimates. Funko also dramatically lowered its fiscal year 2022 guidance. On this news, the price of Funko stock declined more than 59%.
Finally, on March 1, 2023, Funko announced its fiscal year 2022 financial results. Funko’s net income for fiscal year 2022 decreased to a $5.2 million loss, its adjusted EBITDA margin decreased to 7.4%, and its adjusted earnings per diluted share came in well below prior estimates at just $0.57 per share. On this news, the price of Funko stock declined more than 29%, further damaging investors.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Funko common stock on a U.S. open market during the Class Period to seek appointment as lead plaintiff of the Funko class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Funko class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Funko class action lawsuit. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Funko class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller is one of the world’s leading complex class action firms representing plaintiffs in securities fraud cases. The Firm is ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report for recovering more than $1.75 billion for investors in 2022 – the third year in a row Robbins Geller tops the list. And in those three years alone, Robbins Geller recovered nearly $5.3 billion for investors, more than double the amount recovered by any other plaintiffs’ firm. With 200 lawyers in 9 offices, Robbins Geller is one of the largest plaintiffs’ firms in the world and the Firm’s attorneys have obtained many of the largest securities class action recoveries in history, including the largest securities class action recovery ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
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