FNKO Investors Have Opportunity to Lead Funko, Inc. Securities Fraud Lawsuit
LOS ANGELES, June 26, 2023 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that investors with substantial losses have opportunity to lead the securities fraud class action lawsuit against Funko, Inc. ("Funko" or the "Company") (NASDAQ: FNKO).
Class Period: May 6, 2022 – March 1, 2023
Lead Plaintiff Deadline: August 1, 2023
If you are a shareholder who suffered a loss, click here to participate.
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 alleges that, throughout the Class Period, 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.
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To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to [email protected], or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
SOURCE The Law Offices of Frank R. Cruz, Los Angeles
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