FUNKO Inc., a beloved toy and pop culture collectibles company, is wrapped up in a $14.75 million settlement due to allegations of misleading consumers.
Americans impacted by the legal battle can score one-time checks as long as they meet the single eligibility requirement.
Funko is an American company known for its licensed vinyl figurines and bobbleheads that are inspired by TV shows, movies, and video games.
The company has come under fire for allegedly misleading investors regarding its finances prior to an initial public offering, or IPO, per the settlement website.
According to the class action lawsuit, Funko hid its reliance on “channel stuffing.”
This practice involves a company shipping more products to stores than they are able sell to inflate the company’s sales data.
The lawsuit against the company argues that Funko’s misleading statements resulted in its stock trading at artificially high prices.
What is an IPO?
An Initial Public Offering, or IPO, is when a privately held company makes its shares available to the public for the first time, allowing anyone to invest in the company.
Funko Inc. held its IPO in November 2017, becoming a publicly traded company.
Its shares were listed on the NASDAQ stock exchange.
The toy maker’s stock price then fell once the reality of Funko’s financial standing was revealed, resulting in losses for investors.
Although Funko did not admit wrongdoing, the company agreed to a $14.75 million class action lawsuit settlement to resolve the claims against it.
ARE YOU ELIGIBLE?
The settlement involving Funko benefits those who bought the company’s common stock through its IPO on November 1, 2017.
Under the settlement terms, class members will be handed a cash payment depending on how many shares they bought and sold during the class period.
Those who purchased shares in the IPO and sold them prior to June 30, 2018, will be paid based on the difference between the purchase and sales prices.
Payment amounts will vary based on how many Funko shares an investor purchased and sold.
Class members who still hold the shares they bought in the IPO can receive compensation of up to $0.91 per share, depending on how many shares they hold.
Exact payments will depend on the number of claims filed with the Funko class action settlement.
KEY DATES AND FORMS
Consumers impacted by the Funko settlement should keep a few key dates in mind.
Class members must file a valid claim form by July 2, 2025, in order to receive their due payment.
What's a class-action settlement?
Class action lawsuits offer groups of people, or 'classes,' a way to band together in court.
These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.
When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.
These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.
When submitting a claim form, acceptable forms of evidence include documentation that can be linked to the registration statement and prospectus issued by Funko in relation to the IPO.
The settlement’s final approval hearing is set to take place on June 6, 2025.
The deadline for class members to exclude or object to the settlement has already passed.
If you are ineligible for the Funko class action settlement, you may be able to receive compensation from other settlements.
Americans can score checks up to $5,300 from a new settlement – but must have gotten a crucial notice in the mail.
Plus, there are just weeks left to get a direct payment in a $3.1 million “recall” settlement – but must provide proof.
GettyFunko is handing out one-time payments to resolve claims that it misled consumers[/caption] Read More Details
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