SAN DIEGO & EVERETT, Wash.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Funko, Inc. (NasdaqGS: FNKO) filed a class action complaint on June 4, 2018, against the company's officers and directors for alleged violations of the Securities Act of 1933 pursuant to the company's November 1, 2017 initial public offering ("IPO"). Funko, a pop culture consumer products company, designs, sources, and distributes licensed pop culture products in the United States, China, Vietnam, and the United Kingdom.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/funko-inc-june-2018
Funko Accused of Misleading Investors About its Financial Condition
In its IPO, Funko sold 10,416,666 shares of Class A common stock at $12.00 per share, generating proceeds of approximately $116.4 million. Funko's Registration Statement said that the company's financial performance reflected the strong growth of its business, citing its leadership in pop culture consumer products. However, the complaint alleges that Funko's profits and growth were not as optimistic as the company represented in its offering documents. On November 2, 2017, Bloomberg published an article entitled "Funko Extends Playtime to Its Accounting," calling into question how Funko could report an 86% earnings increase while losing more than $10 million in the first half of 2017. Yahoo Finance subsequently published an article doubting the company's readiness to go public and a New York Times article questioned whether selling giant-headed dolls of pop-culture figures is a sustainable business.
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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