Funko, Inc. (NASDAQ: FNKO)
On November 2, 2017, Bloomberg reported: “In Funko’s IPO prospectus, in a chart with a big arrow pointing up, the company says that an important measure of its income, which it uses to determine the success of its operational strategies, rose by an average of 86 percent in its past two full years. The actual bottom line, though, was up an average of just 16 percent in 2015 and 2016 and has turned negative lately. Funko lost just more than $10 million in the first half of this year. How the toymaker gets a loss of $10 million to reflect back as an 86 percent earnings increase is the latest example of fun-house accounting on Wall Street.”
This news drove the price of Funko shares down $4.93, or 41% below the IPO price, to close at $7.07.
“We’re focused on investors’ losses and Defendants’ representations in Funko’s IPO prospectus,” said Hagens Berman partner Reed Kathrein.
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 510-725-3000 or email FNKO@hbsslaw.com.
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