Faruqi & Faruqi, LLP Encourages Investors Who Suffered Losses Exceeding $50,000 In Funko, Inc. To Contact The Firm
Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Funko, Inc. (“Funko” or the “Company”) (NASDAQ:FNKO) of the May 11, 2020 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 or options between October 31, 2019 and March 5, 2020 and would like to discuss your legal rights, please fill out the form below. 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 firstname.lastname@example.org.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Funko securities between October 31, 2019 and March 5, 2020 (the “Class Period”). The case, Gilberto Ferreira v. Funko, Inc. et al., No. 20-cv-02319 was filed on March 10, 2020.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by failing to disclose to investors: (1) that Funko was experiencing lower than expected sales; (2) that, as a result, Funko was reasonably likely to incur a write down for slower moving inventory; and (3) that, 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.
Specifically, on February 5, 2020, after the market closed, 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."
On this news, Funko’s share price fell from $15.49 per share on February 5, 2020 to a closing price of $9.29 on February 6, 2020—a $6.20 or 40.03% drop.
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 share price fell from $7.24 per share on March 5, 2020 to a closing price of $6.92 on March 6, 2020—a $0.32 or 4.41% drop.
If you have information regarding this case that you would like to make available, please click here to contact us about our investigation.
Filed on 03/11/2020
Ticker NASDAQ: FNKO
Class period 10/31/2019 - 03/05/2020
Court Central District of California
685 Third Avenue 26th Floor
10017 New York, New York
Phone (212) 983-9330
Fax (212) 983-9331
Richard W. Gonnello email@example.com Phone (212) 983-9330 Fax (212) 983-9331