Funko IPO $14.75m Securities Class Action Settlement

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.