NEW YORK, June 15, 2023 (GLOBE NEWSWIRE) -- Kaplan Fox & Kilsheimer LLP reminds investors that a complaint has been filed on behalf of purchasers of Funko, Inc. (“Funko” or the “Company”) common stock (NASDAQ: FNKO) between May 6, 2022 and March 1, 2023, inclusive (the “Class Period”). Click Here to Join Investigation.
If you acquired Funko common stock during the Class Period and would like to discuss this case, please click here. You may also contact us by emailing pmayer@kaplanfox.com or calling (646) 315-9003.
If you are a member of the proposed Class, you may move the court no later than August 1, 2023 to serve as a lead plaintiff for the purported class. If you have losses, we encourage you to contact us to learn more about the lead plaintiff process.
Funko is a pop culture consumer products company that sells pop culture collectibles such as vinyl figures, action toys and other accessories relating to movies, TV shows, video games, musicians and sports teams.
The complaint alleges that throughout the Class Period Defendants misrepresented to investors facts concerning the move of Funko's distribution center from Everett, Washington to Buckeye, Arizona as well as the planned upgrade of the Company's enterprise resource planning (ERP) software system. According to the complaint, defendants repeatedly spoke of the necessity for these upgrades to serve current and future business needs, but failed to disclose that (1) Funko was experiencing significantly larger delays in implementing its ERP software than it was disclosing to investors, (2) moving 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.
The truth allegedly started to be revealed on November 3, 2022, when, after the market closed, Funko issued a press release announcing results for the third quarter of 2022. The November 3, 2022 press release announced that Funko's earnings were only $0.28 per share, more than 42% below street estimates of $0.49 per share, and also that management had dramatically cut Funko's fiscal year 2022 guidance.
Following this news, on November 4, 2022, the price of Funko's common stock fell $11.58 per share to $7.92, a 59.4% drop, on heavy volume of over 15 million shares.
Then, on March 1, 2023, the complaint alleges Funko issued a press release, reporting fourth quarter 2022 results, including “a $32.5 million inventory write down of capitalized costs associated with the decision not to implement a previously disclosed [ERP] system.”
Following this news, the complaint alleges that on March 2, 2023, the price of Funko's common stock fell intra-day $3.17 per share to $7.53, a 29.6% drop, before recovering somewhat to close down $0.76 per share at $9.94 or a 7.1% drop on heavy volume of 4.3 million shares.
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If you have any questions about this Notice, your rights, or your interests, please contact:
Pamela Mayer
KAPLAN FOX & KILSHEIMER LLP
800 Third Avenue, 38th Floor
New York, New York 10022
(646) 315-9003
E-mail: pmayer@kaplanfox.com
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
Fax: (415) 772-4707
E-mail: lking@kaplanfox.com
