FUNKO Inc., a popular brand known for toys and pop culture collectibles, has agreed to a $14.75 million settlement.
The settlement alleges that the company misled its customers.
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Eligible Americans may qualify for a one-time payment if they meet a single requirement.
Funko, Inc., is widely recognized for its licensed vinyl figures and bobbleheads inspired by movies, TV, and gaming.
The Washington-based company allegedly gave investors false impressions about its financial health before its initial public offering (IPO), according to the settlement website.
The class action suit accuses Funko of concealing its use of “channel stuffing.”
This tactic involves oversupplying retailers with products to artificially boost sales figures.
The lawsuit claims that misleading disclosures caused Funko’s stock to be overvalued.
Funko’s share price later dropped after its actual financial condition became clearer, leading to investor losses.
Although Funko denied any fault, it chose to settle the lawsuit for $14.75 million.
WHO QUALIFIES?
The settlement is open to people who bought Funko common stock during its November 1, 2017 IPO.
Eligible investors will get cash payments based on the number of shares they bought and sold during the class period.
Those who purchased IPO shares and sold them before June 30, 2018 will receive payments based on the price difference.
Payouts will differ depending on the number of Funko shares involved in each claim.
Investors who still hold their IPO shares may receive up to $0.91 per share, depending on how many they own.
Final payment amounts will be determined by the total number of claims submitted.
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.
PAYMENT TIMELINE
Affected consumers should take note of some important upcoming dates.
Claim forms must be filed no later than July 2, 2025, to qualify for compensation.
Acceptable proof includes documentation tied to the registration statement and prospectus for Funko’s IPO.
A final approval hearing for the settlement is scheduled for June 6, 2025.
The deadline to opt out or object to the agreement has already expired.
People who don’t qualify for this Funko payout may be eligible for other settlements.
Some Americans could receive checks of up to $5,300 through a different settlement, provided they got a required notice by mail.
In addition, time is running out to claim a payment from a $3.1 million “recall” settlement, which requires proof of purchase.