SHAREHOLDER ALERT: Pomerantz Law Firm Reminds Shareholders with Losses on their Investment in Funko, Inc. of Class Action Lawsuit and Upcoming Deadline- FNKO

NEW YORK, NY / ACCESSWIRE / May 5, 2020 / Pomerantz LLP announces that a class action lawsuit has been filed against Funko, Inc. ("Funko" or the "Company") (NASDAQ:FNKO) and certain of its officers. The class action, filed in United States District Court for the Central District of California, and indexed under 20-cv-03130, is on behalf of a class consisting of all persons and entities other than Defendants who purchased or otherwise acquired Funko securities between October 31, 2019, and March 5, 2020, both dates inclusive (the "Class Period"). Plaintiff pursues claims against the Defendants under the Securities Exchange Act of 1934 (the "Exchange Act").

If you are a shareholder who purchased Funko securities during the class period, you have until May 11, 2020, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

Funko is a pop culture consumer products company that creates figures, plush, accessories, apparel, and homewares regarding movies, TV shows, videogames, musicians, and sports teams.

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Funko was experiencing lower than expected sales; (ii) consequently, Funko was reasonably likely to incur a write-down for slower moving inventory; and (iii) as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis.

On February 5, 2020, after the market closed, Funko issued a press release announcing its preliminary fourth-quarter 2019 financial results. Therein, Funko stated that "[n]et sales are expected to be approximately $214 million, a decrease of 8% compared to $233 million in the fourth quarter of 2018." The Company also disclosed a $16.8 million writedown to "dispose of slower moving inventory to increase operational capacity."

On this news, Funko's stock price fell $6.20 per share, or 40%, to close at $9.29 per share on February 6, 2020, on unusually heavy trading volume.

Then, on March 5, 2020, after the market closed, Funko issued a press release announcing its fourth-quarter and full-year 2019 financial results. Therein, Funko affirmed that net sales for fourth-quarter had decreased 4% year-over-year to $213.6 million due to, among other things, "softness at retail during the holiday season which led to a decrease in orders."

On this news, Funko's stock price fell $0.32 per share, or over 4%, to close at $6.92 per share on March 6, 2020, thereby injuring investors further.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com

CONTACT: 

Robert Willoughby
212-661-1100 x9980
rswilloughby@pomlaw.com

SOURCE: Pomerantz LLP

ReleaseID: 588538