The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Funko Inc. Investors (FNKO)
May 01 2020 - 5:38PM
Business Wire
The Law Offices of Frank R. Cruz announces that a class action
lawsuit has been filed on behalf of persons and entities that
purchased or otherwise acquired Funko, Inc. (“Funko” or the
“Company”) (NASDAQ: FNKO) securities between October 31, 2019
and March 5, 2020, inclusive (the “Class Period”). Funko
investors have until May 11, 2020 to file a lead plaintiff
motion.
If you are a shareholder who suffered a loss, click here to
participate.
On February 5, 2020, after the market closed, Funko issued a
press release announcing preliminary fourth quarter 2019 financial
results. Therein, Funko stated that “[n]et sales are expected to be
approximately $214 million, a decrease of 8% compared to $233
million in the fourth quarter of 2018.”
On this news, the Company’s share price fell $6.20, or over 40%,
to close at $9.29 per share on February 6, 2020, thereby injuring
investors.
On March 5, 2020, after the market closed, Funko issued a press
release announcing its fourth quarter and full year 2019 financial
results. Therein, Funko affirmed that net sales for fourth quarter
had decreased 4% year-over-year 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 $0.32, or over 4%, to
close at $6.92 on March 6, 2020, thereby injuring investors
further.
The complaint filed in this class action alleges that throughout
the Class Period, Defendants made materially false and/or
misleading statements, as well as failed to disclose material
adverse facts about the Company’s business, operations, and
prospects. Specifically, Defendants failed to disclose to
investors: (1) that Funko was experiencing lower than expected
sales; (2) that, as a result, Funko was reasonably likely to incur
a writedown for slower moving inventory; and (3) that, as a result
of the foregoing, Defendants’ positive statements about the
Company’s business, operations, and prospects were materially false
and/or misleading and/or lacked a reasonable basis.
Follow us for updates on Twitter: twitter.com/FRC_LAW.
If you purchased Funko securities during the Class Period, you
may move the Court no later than May 11, 2020 to ask the
Court to appoint you as lead plaintiff. To be a member of the Class
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. If you purchased Funko securities, have information or would
like to learn more about these claims, or have any questions
concerning this announcement or your rights or interests with
respect to these matters, 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
info@frankcruzlaw.com, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200501005531/en/
The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz,
310-914-5007 fcruz@frankcruzlaw.com www.frankcruzlaw.com
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