Pomerantz Investigates Funko for Securities Fraud and Unlawful Business Practices.

Pomerantz LLP is investigating claims against Funko, Inc. over alleged securities fraud and unlawful business practices. The investigation concerns the departure of CEO Cynthia Williams and the subsequent decline in stock price. Investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

Pomerantz LLP, a leading law firm in corporate, securities, and antitrust class litigation, has announced an investigation into claims on behalf of Funko, Inc. (NASDAQ: FNKO) investors. The investigation centers on whether Funko and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices [1]. Investors are advised to contact Danielle Peyton at newaction@pomlaw.com or 646-581-9980, ext. 7980, for more information.

The investigation was initiated following the departure of Cynthia Williams as Funko's Chief Executive Officer, effective July 5, 2025. On July 7, 2025, Funko's stock price fell by $0.51 per share, or 10.49%, to close at $4.35 per share, a significant drop that raised concerns among investors [2]. The Pomerantz Firm, known for its pioneering work in securities class actions, is now examining potential misconduct by Funko.

The investigation comes at a time when Funko is facing financial challenges. The company reported a 22% drop in sales to $193.5 million and a net loss of $41 million for the second quarter of 2025. These financial struggles have been attributed to disruptions from U.S. tariff policies, which led to paused orders from direct import customers and a costly shift of production out of China [3]. Funko's stock market capitalization has been volatile following these earnings reports, dropping from $3.66 before the earnings to $159.8 million after [3].

The appointment of Josh Simon as Funko's new CEO, effective September 1, signals a strategic shift in the company's leadership. Simon joins from Netflix, where he served as VP of consumer products, and previously held senior management roles at Nike and The Walt Disney Company. His extensive experience in entertainment and consumer products is seen as a strategic asset for Funko's future growth [1].

Funko's recent financial performance and the departure of its CEO have raised questions about the company's management and financial practices. The Pomerantz investigation aims to provide transparency and accountability for Funko's investors. The firm's track record of recovering multimillion-dollar damages for class members underscores its commitment to fighting securities fraud and corporate misconduct [2].

References:
[1] https://www.geekwire.com/2025/funko-names-netflix-vet-as-new-ceo-a-week-after-pop-culture-collectibles-maker-reported-41m-loss/
[2] https://finance.yahoo.com/news/top-5-analyst-questions-funko-053614824.html
[3] https://www.newsweek.com/funko-pops-toy-prices-tariffs-donald-trump-2112900