SAN FRANCISCO, Feb. 6, 2020 /PRNewswire/ -- Hagens Berman urges investors in Funko, Inc. (NASDAQ: FNKO) who have suffered significant losses to submit their losses now. The firm is actively investigating whether the Company and senior executives violated federal securities laws, and certain investors may have valuable claims.
Funko, Inc. (FNKO) Investigation:
The investigation centers on whether Funko and its senior management overstated demand for its products and the value of its reported inventory.
In past quarters Funko has emphasized the "favorable trends in product costs," "stronger demand," and "stronger opportunities" for its pop culture products.
On Feb. 5, 2020, however, the Company shocked investors when it announced disappointing Q4 2019 revenues of $214 million, or nearly 20% below analysts' consensus, and EPS of $0.16 to $0.18, or nearly 58% - 62% below street projections. Management blamed these poor results in part on a $16.8 million charge to write down slow-moving inventory.
In response to Funko's dim 2020 guidance, D.A. Davidson reportedly said it has "low confidence in the 'hockey stick sales guidance.'" JPMorgan analyst Christopher Horvers reportedly said "[t]actically, back half-weighed stories are tough to endorse, especially on such a big 4Q miss" and "[i]n our view, the stock looks to be in the penalty box for an extended period.
This news drove the price of Funko shares sharply lower on Feb. 6, 2020.
"We're focused on investors' losses and whether Funko misstated sales and inflated the value of its inventory," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you purchased shares of Funko and suffered significant losses, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Funko should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email FNKO@hbsslaw.com.
About Hagens Berman
Hagens Berman is a national law firm with nine offices in eight cities around the country and eighty attorneys. The firm represents investors, whistleblowers, workers and consumers in complex litigation. More about the firm and its successes is located at hbsslaw.com. For the latest news visit our newsroom or follow us on Twitter at @classactionlaw.
Reed Kathrein, 844-916-0895
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SOURCE Hagens Berman Sobol Shapiro LLP