Law Offices of Howard G. Smith reminds investors of the upcoming August 1, 2023 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Funko, Inc. (“Funko” or the “Company”) (NASDAQ: FNKO) common stock between May 6, 2022 and March 1, 2023, inclusive (the “Class Period”).
Investors suffering losses on their Funko investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.
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 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 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.
If you purchased or otherwise acquired Funko common stock during the Class Period, you may move the Court no later than August 1, 2023 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. 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 these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.
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View source version on businesswire.com: https://www.businesswire.com/news/home/20230613753700/en/
Contacts
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
215-638-4847
888-638-4847
howardsmith@howardsmithlaw.com
www.howardsmithlaw.com
