A lawsuit was filed on behalf of investors in Funko, Inc. (NASDAQ: FNKO) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 03/26/2020 -- An investor, who purchased NASDAQ: FNKO shares, filed a lawsuit against Funko, Inc. over alleged violations of Federal Securities Laws.
Investors in shares of Funko, Inc. (NASDAQ: FNKO) have certain options and for certain investors are short and strict deadlines running. Deadline: May 11, 2020. NASDAQ: FNKO investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
On February 5, 2020, Funko, Inc. reported preliminary financial results for the fourth quarter ended December 31, 2019. Net sales are expected to be approximately $214 million, a decrease of 8% compared to $233 million in the fourth quarter of 2018. The sales fell well below average analyst estimates of $264.29 million. On a third-quarter conference call, the Company CFO, Jennifer Jung, stated, "we are maintaining our guidance ranges, we laid out on the second quarter conference call."
On March 5, 2020, Funko, Inc. announced 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."
The plaintiff claims that between October 31, 2019 and March 5, 2020, the Defendants failed to disclose to investors that Funko was experiencing lower than expected sales, that, as a result, Funko was reasonably likely to incur a writedown for slower moving inventory, and that 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.
Those who purchased shares of Funko, Inc. (NASDAQ: FNKO) have certain options and should contact the Shareholders Foundation.
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