SAN DIEGO & EVERETT, Wash.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Funko, Inc. (NasdaqGS: FNKO) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 pursuant to the company's November 2, 2017 initial public offering ("IPO"). Funko is a pop culture consumer products company that designs and sells nostalgic bobble head figures in the United States and Europe.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/funko-inc
Funko Accused of Suspicious Accounting Practices
According to the complaint, the Funko "IPO saw the worst first-day return for a Wall Street IPO in 17 years, causing shares to drop a staggering 41% from their initial price of $12 to close at $7.07." Bloomberg reported that experts suspect that the flop was due to Funko's accounting practices, noting that the company lost more than $10 million in the first half of 2017. The report also noted that despite Funko's assertion that an important measure of its income rose by 86% in its past two full years, the company's bottom line was up an average of just 16% in 2015 and 2016 and had turned negative lately. Funko's shares have yet to recover their IPO value, closing at only $8.26 per share on March 20, 2018.
Funko Shareholders Have Legal Options
If you would like more information about your rights and potential remedies, contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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