Funko, Inc. Accused of Suspicious Accounting Practices
According to the complaint, the Funko, Inc. (NasdaqGS: FNKO) “IPO saw the worst first-day return for a Wall Street IPO in 17 years, causing shares to drop a staggering 41% from their initial price of $12 to close at $7.07.” Bloomberg reported that experts suspect that the flop was due to Funko’s accounting practices, noting that the company lost more than $10 million in the first half of 2017. The report also noted that despite Funko’s assertion that an important measure of its income rose by 86% in its past two full years, the company’s bottom line was up an average of just 16% in 2015 and 2016 and had turned negative lately. Funko’s shares have yet to recover their IPO value, closing at only $8.26 per share on March 20, 2018.
Funko Shareholders Have Legal Options
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