Funko Securities Class Action Settlement: $14.75M

Individuals and entities that purchased or otherwise acquired Funko common stock through its IPO on November 1, 2017.

Documentation confirming purchase of shares traceable to the registration statement and prospectus issued in connection with Funko’s IPO.

Funko Inc. has agreed to a $14.75 million class action settlement to resolve allegations it misrepresented its financial condition before going public in November 2017. The class action lawsuit alleges that the company misled investors by concealing its use of “channel stuffing,” a practice that artificially inflates revenue by pushing excess inventory onto retailers.

According to the lawsuit, Funko’s failure to disclose this practice caused its IPO price to be artificially inflated. When the company’s true financial situation was revealed, its stock price declined, resulting in significant losses for investors.

Funko, a company known for its collectible pop culture figures, denied any wrongdoing but chose to settle the case to avoid prolonged litigation.

Under the Terms of the Settlement

Eligible investors may receive cash payments based on when they bought and sold Funko stock:

• Investors who purchased shares in the IPO and sold them before June 30, 2018, may be entitled to a payment based on the difference between their purchase and sale price.

• Investors who purchased shares in the IPO and held them beyond that period may receive a payment of up to $0.91 per share.

Exact payment amounts will depend on the number of valid claims submitted and the number of shares involved.

This securities settlement is intended to compensate investors for losses tied to the company’s alleged misstatements and to reinforce transparency standards in public offerings.