Ademi & O’Reilly, LLP is investigating possible securities fraud claims against Funko, Inc. (NASDAQ: FNKO) resulting from inaccurate statements Funko made regarding its internal controls, business practices, financial statements and prospects.
The investigation focuses on whether Funko issued false and misleading statements regarding its business practices and prospects. Specifically, Funko expects fourth-quarter sales of $214 million, down from $233 million last year and significantly lower than the consensus of $231 million. Funko said a "challenging retail environment" and weak sales related to some major movie releases were to blame. The company will also incur a one-time $16.8 million charge to write-down disposal of slow-moving inventory. Funko expects 2020 sales growth in the high-single digit to low-double digit range, though the first half is expected to be flat to down in the low-single digit range compared to 2019.