NEW YORK, June 24, 2023 /PRNewswire/ — Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Funko, Inc. (“Funko” or the “Company”) (NASDAQ: FNKO) and reminds investors of the August 1, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in Funko stock or options between May 6, 2022 and March 1, 2023and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: .
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
The complaint alleges that throughout the Class Period Defendants misrepresented to investors facts concerning the move of Funko’s distribution center from Everett, Washington to Buckeye, Arizona as well as the planned upgrade of the Company’s enterprise resource planning (ERP) software system. Defendants repeatedly spoke of the necessity for these upgrades to serve current and future business needs, but failed to disclose that: (1) Funko was experiencing significantly larger delays in implementing its 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.
The truth began to be revealed on November 3, 2022, when, after the market closed, Funko issued a press release announcing results for the third quarter of 2022. The November 3, 2022 press release announced that Funko’s earnings per share had come in at $0.28 per share, more than 42% below street estimates of $0.49 per share, and also that management had dramatically cut Funko’s FY 2022 guidance.
In response to this news, on November 4, 2022, the price of Funko’s common stock fell $11.58 per share to $7.92 or a 59.4% drop on exceptionally heavy volume of 15.197 million shares, more than twelve times the average daily trading volume of Funko’s common stock.
The results of Funko’s rocky distribution center move and ERP implantation continued to impact the Company. On March 1, 2023, Funko issued a press release, reporting results for the fourth quarter 2022.
In response to this news, on March 2, 2023, the price of Funko’s common stock fell intra-day $3.17 per share to $7.53, a 29.6% drop, before recovering somewhat to close down $0.76 per share at $9.94 or a 7.1% drop on exceptionally heavy volume of 4.3 million shares, more than six times the average daily trading volume of Funko’s common stock.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Funko’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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