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SAN DIEGO, June 27, 2023 (GLOBE NEWSWIRE) — Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Funko, Inc. FNKO common stock between May 6, 2022 and March 1, 2023. Funko is a pop culture consumer products company that creates vinyl figures, action toys, plush, accessories, apparel, and homewares relating to movies, TV shows, video games, musicians, and sports teams.
For more information, submit a form, email Aaron Dumas, Jr., or give us a call at (800) 350-6003.
What is this Case About: Funko, Inc. (FNKO) Misled Investors Regarding Implementation of its New Software and New Distribution Center
According to the complaint, during the class period, defendants promoted the planned moved of Funko’s distribution center from Everett, Washington to Buckeye, Arizona as well as the planned upgrade on the Company’s enterprise resource planning (ERP) software system. Defendants repeatedly spoke of the necessity for these upgrades to serve current and future business needs.
However, these statements were materially false and misleading. Defendants failed to disclose that: (i) Funko was experiencing significantly larger delays in implementing its ERP software than it was disclosing to investors; (ii) having moved into a new warehouse without functioning ERP software in place would lead to dramatically higher costs and poorer inventory management practices; and (iii) Funko’s inability to efficiently operate the new distribution center would have a substantial, undisclosed impact on Funko’s earnings before interest, taxes, depreciation, and amortization (“EBITDA”) margin.
On November 3, 2022, Funko announced its 3Q 2022 results in which Funko’s earnings per share were 42% below Street estimates. The same day, Funko dramatically lowered its FY 2022 guidance and cut its projected FY 2022 Adjusted EBITDA margin. In response, Funko’s stock price fell $11.58 per share, or almost 60%.
Then, on…
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