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Funko faces securities fraud investigation by Pomerantz LLP.
ByAinvest
Wednesday, Aug 13, 2025 11:57 am ET1min read
Pomerantz LLP is investigating claims of securities fraud and unlawful business practices against Funko, Inc. and its officers and directors. The investigation follows the departure of CEO Cynthia Williams, which caused a 10.49% drop in Funko's stock price. Investors who purchased Funko stock are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980.
Funko Inc., the struggling maker of pop-culture figurines, has named Netflix executive Josh Simon as its new chief executive officer. Simon, who oversees consumer products at Netflix, will take over on September 1 and join the company's board [1].Shares of Funko have dropped 80% this year amid losses and declining sales of its big-headed toys and collectibles. The company replaced CEO Cynthia Williams, a former Hasbro executive, after just one year, bringing former CEO Mike Lunsford back on an interim basis [1]. Funko's revenue has fallen for two straight years after a surge during the pandemic and is poised to slip again in 2025 [1].
Funko's second-quarter 2025 earnings report showed revenue of $193.5 million, a 22% decrease from the same period last year, and a net loss of $40.5 million [2]. The company's shares are down 31% from a week ago. Despite revenue beating analyst estimates by 5.2%, earnings per share (EPS) missed estimates by 57% [2].
The appointment of Simon follows more than five years at Netflix, where he served as vice president of consumer products, overseeing its global merchandise business, live experiences, and the Roald Dahl Story Co [1].
Pomerantz LLP is currently investigating claims of securities fraud and unlawful business practices against Funko, Inc. and its officers and directors. The investigation follows the departure of CEO Cynthia Williams, which caused a 10.49% drop in Funko's stock price [3]. Investors who purchased Funko stock are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980 [3].
References:
[1] https://www.bloomberg.com/news/articles/2025-08-12/funko-names-netflix-executive-to-lead-turnaround-of-toymaker
[2] https://finance.yahoo.com/news/funko-second-quarter-2025-earnings-145110331.html
[3] https://www.pomlaw.com/press-releases/funko-inc-investigation
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