The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of those who acquired Funko, Inc. (“Funko” or the “Company”) (NASDAQ: FNKO) securities during the period from October 31, 2019 through March 5, 2020. Investors have until May 11, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Funko was experiencing lower than expected sales; and (ii) as a result, Funko was reasonably likely to incur a writedown for slower moving inventory.
On February 5, 2020, Funko issued a press release announcing 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 share price fell $6.20, or 40%, to close at $9.29 per share on February 6, 2020.
On March 5, 2020, 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 share price fell $0.32, or 4.4%, to close at $6.92 per share on March 6, 2020.
If you acquired Funko securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at email@example.com, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.