June 11, 2020
Bernstein Liebhard LLP announced today that the court appointed the Firm as co-lead counsel in a securities class action lawsuit pending in the United States District Court for the Central District of California on behalf of those who purchased the securities of Funko, Inc. (“Funko” or the “Company”) (NASDAQ: FNKO) between August 8, 2019, and March 5, 2020 (the “Class Period”).
The initial complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Funko was experiencing lower than expected sales; (2) that, as a result, Funko was reasonably likely to incur a writedown for slower moving inventory; and (3) 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.
On February 5, 2020, after the market closed, Funko issued a press release announcing preliminary fourth quarter 2019 financial results. Therein, Funko stated that net sales were expected to be approximately $214 million, a decrease of 8% compared to $233 million in the fourth quarter of 2018. On this news, the Company’s share price fell $6.20, or over 40%, to close at $9.29 per share on February 6, 2020, thereby injuring investors. On March 5, 2020, after the market closed, Funko issued a press release announcing 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. On this news, Funko’s share price fell $0.32, or over 4%, to close at $6.92 on March 6, 2020, thereby injuring investors further.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for twelve consecutive years.
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Stephanie M. Beige
Bernstein Liebhard LLP