NEW YORK, March 18, 2020 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Funko, Inc. (NASDAQ: FNKO), Allakos, Inc. (NASDAQ: ALLK), and Cronos Group, Inc. (NASDAQ: CRON). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.
Funko, Inc. (NASDAQ: FNKO)
Class Period: October 31, 2019 to March 5, 2020
Lead Plaintiff Deadline: May 11, 2020
On February 5, 2020, 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.” The Company also disclosed a $16.8 million write down to “dispose of slower moving inventory to increase operational capacity.”
On this news, Funko’s share price fell $6.20, or 40%, to close at $9.29 per share on February 6, 2020.
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.
The complaint, filed on March 11, 2020, 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 write down 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.
For more information on the FUNKO class action go to: https://bespc.com/FNKO-2
Allakos, Inc. (NASDAQ: ALLK)
Class Period: August 5, 2019 and December 17, 2019
Lead Plaintiff Deadline: May 11, 2020
Allakos is developing AK002 for the treatment of eosinophilic gastritis and eosinophilic gastroenteritis, urticaria, indolent systemic mastocytosis, and severe allergic conjunctivitis.
On August 5, 2019, Allakos issued a press release announcing that AK002 had met all prespecified primary and secondary endpoints in its Phase 2 clinical trial (the “ENIGMA Trial”).
Then, on December 18, 2019, Seligman Research (“Seligman”) published a report characterizing Allakos as “A Suspect Biotech with a Phase 2 Farce, Incredulous Trial Investigators, and Warning Signs of Potential Fraud.” Among a litany of other issues, the Seligman report accused Allakos of having “buried the results for the two AK001 studies it conducted, but our research indicates a debacle”; having “a checkered history of conducting small, low-credibility trials, marked by a striking level of what we consider to be discrepancies, omissions, cherry-picking, and other red flags”; and engaging in “[f]lagrant nepotism in key clinical roles.”
On this news, Allakos’s stock price fell $13.25 per share, or 10%, to close at $119.28 on December 18, 2019.
The complaint, filed on March 10, 2020, alleges throughout the Class Period defendants made false and/or misleading statements and/or failed to disclose that: (1) the Company’s ENIGMA Trial for its flagship drug, AK002, was poorly designed; (2) Allakos cherrypicked timeframes to engineer results for the ENIGMA trial; (3) Allakos used superficial endpoints in the ENIGMA Trial relative to FDA guidance; (4) Allakos misrepresented the number of adverse incidents that occurred during the ENIGMA Trial; (5) the ENIGMA Trial was not well-controlled; (6) Allakos failed to report key data from the ENIGMA Trial; and (7) as a result, defendants’ statements about Allakos’ business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
For more information on the Allakos class action go to: https://bespc.com/ALLK
Cronos Group, Inc. (NASDAQ: CRON)
Class Period: May 9, 2019 to March 2, 2020
Lead Plaintiff Deadline: May 11, 2020
On February 24, 2020, Cronos stated that it would delay its fourth quarter and fiscal year 2019 earnings release and conference call, previously scheduled for February 27, 2020.
On this news, Cronos’s share price fell $0.78 per share, or 10.91%, to close at $6.37 on February 24, 2020.
Then, on March 2, 2020, Cronos disclosed that it had requested a 15-day extension for filing a complete Annual Report on Form 10-K with the SEC for its fourth quarter and fiscal year 2019. Cronos attributed the delay to a “review by the Audit Committee of the Company’s Board of Directors, with the assistance of outside counsel and forensic accountants, of several bulk resin purchases and sales of products through the wholesale channel and the appropriateness of the recognition of revenue from those transactions.”
On this news, Cronos’s share price fell an additional $0.70 per share, or 11.63%, to close at $5.32 per share on March 3, 2020.
The complaint, filed on March 11, 2020, alleges that throughout the Class Period defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, defendants made false and/or misleading statements and/or failed to disclose that: (i) Cronos had engaged in significant transactions for which its revenue recognition was inappropriate; (ii) the foregoing would foreseeably necessitate reviews that would delay the Company’s ability to timely file its periodic reports; and (iii) as a result, the Company’s public statements were materially false and misleading at all relevant times.
For more information on the Cronos Group class action go to: https://bespc.com/CRON
About Bragar Eagel & Squire, P.C.:
Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York and California. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact Information:
Bragar Eagel & Squire, P.C.
Melissa Fortunato, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
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