Funko, Inc. (FNKO) Accused of Misleading Investors About its Financial Condition
Purchasers of Funko, Inc. (FNKO) filed a class action complaint on June 4, 2018. In its IPO, Funko, Inc. (FNKO) sold 10,416,666 shares of Class A common stock at $12.00 per share, generating proceeds of approximately $116.4 million. Funko’s Registration Statement said that the company’s financial performance reflected the strong growth of its business, citing its leadership in pop culture consumer products. However, the complaint alleges that Funko’s profits and growth were not as optimistic as the company represented in its offering documents. On November 2, 2017, Bloomberg published an article entitled “Funko Extends Playtime to Its Accounting,” calling into question how Funko could report an 86% earnings increase while losing more than $10 million in the first half of 2017. Yahoo Finance subsequently published an article doubting the company’s readiness to go public and a New York Times article questioned whether selling giant-headed dolls of pop-culture figures is a sustainable business.
Funko, Inc. (FNKO) Shareholders Have Legal Options
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