NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Funko, Inc. (“Funko” or the “Company”) (NASDAQ:FNKO) of the June 4, 2018 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you invested in Funko stock in connection with the Company’s November 1, 2017 initial public offering (“IPO”) and would like to discuss your legal rights, click here: www.faruqilaw.com/FNKO. There is no cost or obligation to you.
You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to email@example.com.
The lawsuit has been filed in the U.S. District Court for the Western District of Washington on behalf of all those who purchased Funko Class A Common Stock in connection with the Company’s November 1, 2017 IPO. The case, Jacobs v. Funko, Inc. et al No. 2:18-cv-00481 was filed on April 2, 2018.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by issuing a materially false and misleading Registration Statement in connection with its IPO on November 1, 2017. Specifically, the Registration Statement failed to disclose that Funko’s profits and growth were not as positive as the Company represented, and that, as a result of the foregoing, Funko’s statements in the Registration Statement regarding its business, operations, and prospects, were materially false and/or misleading.
Specifically, on November 2, 2017, Bloomberg reported on Funko’s business operations, stating, among other things, that “[p]rofits . . . are slowing,” and that “just $7 million, or 10 percent, of Funko’s $69 million increase in adjusted Ebitda . . . was from actual earnings growth[.]”.The report further questioned Funko’s claim of having “intellectual property worth $250 million.”
Following the report, Funko’s share price closed at $7.07 per share on November 2, 2017, a decline of $4.93 or 41% from its IPO price of $12 per share.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. 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. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Funko’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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