About The Funko IPO Securities Class Action Lawsuit
Funko Inc., the company behind the iconic Funko Pop collectibles, has agreed to a $14.75 million settlement to resolve a class action lawsuit alleging violations of the Securities Act of 1933.
The lawsuit claims that the company made false or misleading statements in its Initial Public Offering (IPO) documents, which misled investors.
If you purchased Funko stocks during the IPO period and meet certain conditions, you may be entitled to receive a payment between $0.57 and $0.91 per share. Below is a breakdown of what the lawsuit involves, who qualifies, and how to file your claim before the July 2, 2025, deadline.
Funko went public on November 1, 2017, with an IPO price of $12 per share. However, the company’s stock experienced a dramatic decline on its first trading day, closing at $7.07—a 41% drop, marking one of the worst first-day performances for an IPO in nearly two decades. This sharp decline raised concerns among investors about the company’s financial disclosures and business operations.
The plaintiffs allege that Funko Inc.’s registration statement and prospectus contained materially false and misleading statements, specifically regarding the company’s investor levels, sales projections, and overall financial condition. Plaintiffs claim that these misrepresentations artificially inflated Funko’s stock price, causing them to incur substantial losses when the truth behind the company’s finances came to light.
What Is the Focus of the Lawsuit?
The class action lawsuit accuses Funko of violating the Securities Act of 1933, with key allegations including:
- Overstating the company’s financial performance and growth prospects.
- Failing to disclose significant inventory write-down risks due to obsolete or slow-moving products.
- Engaging in insider trading by selling shares at inflated prices before negative information was publicly disclosed.
The plaintiffs argue that these actions misled investors and violated federal securities laws. While Funko has denied all wrongdoing and legal liability, the company agreed to a $14.75 million settlement to resolve the matter and avoid the burden of continued litigation.
Settlement Details
Under the terms of the settlement, Funko will pay $14.75 million to a fund designated for eligible investors who purchased the company’s common stock during the class period. The settlement amount represents a significant recovery for shareholders, considering the challenges inherent in securities litigation.
The court has scheduled a final approval hearing for June 6, 2025, to determine whether the settlement is fair, reasonable, and adequate. If approved, the settlement will resolve all claims against Funko related to the IPO.
Who Qualifies and How Much Can You Claim?
To qualify to submit a claim for your share of the Funko IPO Securities Class Action Lawsuit, you need to meet the following requirements. These include:
- You have purchased or acquired Funko Class common stock either directly in the IPO on or around November 1, 2017, and;
- The Funko common stocks can be traced back to the IPO registration statement and prospectus.
Settlement Payout
If you meet the eligibility criteria, you may receive an estimated $0.57 to $0.91 per share, depending on the total number of valid claims submitted and the number of eligible shares you hold.
The final amount may vary. After deducting court and administrative costs, the total $14.74 million settlement fund will be distributed proportionately to all approved claimants.
How to Submit Your Claim
To file a claim, visit the Funko Securities Settlement Class Action Lawsuit page. The deadline to submit your claim is July 2, 2025. Don’t miss your opportunity to receive compensation for claims of false or misleading statements in the IPO documents. Visit the settlement page for full details on how to submit a claim, your legal rights, and the implications of accepting the settlement.
If you’re eligible, submitting your claim is simple. You’ll need to provide documentation showing transactions in Funko common stock. Documentation can include: Brokerage statement, trade confirmations, or records showing purchase quantities, prices, and sales dates.
Once you have your documentation, you can submit your claim online or by mail. You’ll need to visit the ‘Submit a Claim’ page to complete the form. Then, follow the instructions and provide the necessary documentation.
The deadline to submit a claim is July 2, 2025.
After filing your claim, you’ll join the settlement and may receive compensation for alleged false or misleading statements in the IPO documents.
The court will hold a fairness hearing on June 6, 2025, to decide whether to approve the settlement terms. If approved, payments will be issued after all claims are processed, and if you qualify, you will receive a check mailed to the address provided on the claim form.
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