Ferreira v. Funko, Inc., et al. Securities Litigation
Bernstein Liebhard announces a $7 million settlement of the securities fraud class action entitled Ferreira v. Funko, Inc., et al., No. 2:20-cv-02319-VAP-(MAAx) (C.D. Cal.). On July 19, 2022, the Court preliminarily approved the Settlement and scheduled a final settlement hearing for November 7, 2022. If you purchased Funko, Inc. common stock during the Class Period (August 8, 2019 through March 5, 2020), information about how to submit a claim, the Settlement, and Settlement Class Members’ rights can be found at the website www.strategicclaims.net/Funko/.
Bernstein Liebhard serves as Co-Lead Counsel on behalf of the Lead Plaintiffs, Abdul Baker, Zhibin Zhang and Huaiyu Zheng, and the putative class. Lead Plaintiffs filed a Second Amended Complaint on March 29, 2021 alleging violations of Sections 10(b), 20(a), and 20(A) of the Securities Exchange Act of 1934 (“Exchange Act”), and Rule 10b-5 promulgated thereunder, against Funko, Inc. (“Funko,” or “the Company”), Brian Mariotti, Jennifer Fall Jung, Andrew Perlmutter, Ken Brotman, Gino Dellomo, Adam Kriger, ACON Investments, L.L.C., ACON Funko Manager, L.L.C., ACON Funko Investors, L.L.C., ACON Funko Investors Holdings 1, L.L.C., ACON Funko Investors Holdings 2, L.L.C., ACON Funko Investors Holdings 3, L.L.C., and ACON Equity GenPar, L.L.C. The Second Amended Complaint alleged that that Defendants violated the federal securities laws by inter alia, issuing false and misleading earnings and sales guidance for the fiscal year 2019 and false and misleading inventory risk warnings. Lead Plaintiffs also alleged that Defendants Mariotti, Perlmutter, Brotman, Dellomo and Kriger sold Funko stock while in possession of material, nonpublic information in violation of Section 20A. Lead Plaintiffs claimed that these misrepresentations caused investors to pay inflated prices for Funko common stock purchased during the Class Period.
On May 7, 2021, the Defendants filed motions to dismiss the Second Amended Complaint. After hearing oral argument, the Court issued an order on October 22, 2021, denying in part and granting in part, Defendants’ motions to dismiss. Thereafter, between December 2021 and March 2022, the parties engaged in preliminary discovery. On April 27, 2022, the parties engaged in a full-day mediation session before an independent mediator, resulting in an agreement in principle to release all claims against Defendants in return for a cash payment of seven million dollars ($7,000,000.00) for the benefit of the Settlement Class.
Full copies of the Stipulation and Agreement of Settlement, the Preliminary Approval Order, and the Internet Notice and Claim Form are available by clicking the links above or at www.strategicclaims.net/Funko/.