SAN FRANCISCO, June 26, 2023 (GLOBE NEWSWIRE) -- Hagens Berman urges Funko, Inc. (NASDAQ: FNKO) investors who suffered substantial losses submit your losses now.
Class Period: May 6, 2022 – Mar. 1, 2023
Lead Plaintiff Deadline: Aug. 1, 2023
Visit: www.hbsslaw.com/investor-fraud/FNKO
Contact An Attorney Now: FNKO@hbsslaw.com
844-916-0895
Funko, Inc. (FNKO) Securities Fraud Class Action:
The litigation focuses on Funko’s assurances related to moving its distribution center from Everett, Washington to Buckeye, Arizona, a move that was dependent for its success on first implementing its necessary enterprise resource planning (“ERP”) software system.
The complaint alleges that Defendants failed to disclose that: (1) Funko was experiencing significantly longer delays in implementing its ERP software than it had been disclosing to investors; (2) having moved into the new center without functioning ERP software in place would lead to dramatically higher costs and poorer inventory management; and (3) Funko’s inability to efficiently operate the new center would have a substantial, undisclosed adverse impact on the company’s EBITDA margin.
Investors learned the truth beginning on Nov. 3, 2022, when Funko reported Q3 2022 EPS that were 42% below expectations, dramatically cut its FY 2022 guidance, and blamed having opened the Buckeye center without implementing the ERP software.
Then, on Mar. 1, 2023, Funko reported that, in Q4 2022, it suffered a year-over-year 48% increase in inventory, a year-over year 78% increase in SG&A expenses, and expected $30 to $36 million inventory write down, and a $32.5 million write down on its decision not to implement its ERP software.
During the earnings call that day, the new CEO Brian Mariotti said “[l]ook, we had a fairly botched ERP process and unfortunately a really nice warehouse that was configured for an ERP and [warehouse management system] that never arrived on time.”
These events sent the price of Funko shares sharply lower.
“We’re focused on investors’ losses and proving Funko misled investors about the adverse financial fallout from its failure to implement its ERP software,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in Funko and have substantial losses, or have knowledge that may assist the firm’s investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Funko should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FNKO@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
