Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Funko, Inc. (“Funko” or the “Company”) (NASDAQ: FNKO) common stock between May 6, 2022 and March 1, 2023, inclusive (the “Class Period”). Funko investors have until August 1, 2023 to file a lead plaintiff motion.
If you suffered a loss on your Funko investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Funko-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at firstname.lastname@example.org to learn more about your rights.
On November 3, 2022, after the market closed, Funko released its third quarter 2022 financial results. The Company announced earnings per diluted share of $0.28 per share, more than 42% below street estimates of $0.49 per share. The Company also lowered its fiscal year 2022 guidance.
On this news, Funko’s stock price fell $11.58 per share, or 59.4%, to close at $7.92 per share on November 4, 2022, thereby injuring investors.
Then, on March 1, 2023, after the market closed, Funko announced its fiscal year 2022 results, and guidance for 2023. The Company disclosed a loss of $5.2 million, and that its adjusted EBITDA margin decreased to 7.4%.
On this news, Funko’s stock price fell $0.76 per share, or 7.1%, to close at $9.94 per share on March 2, 2023, thereby injuring investors further.
The complaint filed in this class action 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 that: (1) Funko was experiencing significantly larger delays in implementing its enterprise resource planning (“ERP”) software than it was disclosing to investors; (2) Having moved into a new warehouse without functioning ERP software in place would lead to dramatically higher costs and poorer inventory management practices; and (3) Funko’s inability to efficiently operate the new distribution center would have a substantial, undisclosed impact on the Company’s EBITDA margin; and (4) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Funko common stock during the Class Period, you may move the Court no later than August 1, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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