SAN FRANCISCO, April 9, 2020 /PRNewswire/ -- Hagens Berman urges investors in Funko, Inc. (NASDAQ: FNKO) who have suffered significant losses to submit their losses now. A new securities fraud class action complaint has been filed against the Company, extending the fraudulent period back to Aug. 8, 2019
Funko, Inc. (FNKO) Securities Class Action:
The complaint alleges that Defendants misrepresented and failed to disclose material facts regarding Funko's business, operations and prospects. According to the complaint, while promoting the demand for Funko's products and representing that it properly accounted for inventory, Defendants concealed that (1) Funko was experiencing lower than expected sales, and (2) as a result, Funko was reasonably likely to incur a writedown for slower moving inventory.
The market began to learn the truth on Feb. 5, 2020 when, after the market closed, Funko announced disappointing preliminary Q4 2019 results, including net sales of $214 million, an 8% year-over-year decrease. Management blamed these poor results in part on a $16.8 million charge to write down slow-moving inventory. On this news, Funko's share price fell $6.20, or 40%.
Then, on Mar. 5, 2020, the Company issued a press release announcing its Q4 2019 and full year 2019 financial results. Therein, Funko affirmed that net sales for fourth quarter had decreased 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 another $0.32, or nearly 5%.
"We're focused on investors' losses and proving that Funko misstated demand and inflated the value of its inventory," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Funko and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Funko should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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Reed Kathrein, 844-916-0895
SOURCE Hagens Berman Sobol Shapiro LLP