Funko Inc. investors convinced an appellate court to revive part of their proposed class action alleging the Pop! figurine maker misled them over the state of its inventory management and information technology system.
Shareholders sufficiently alleged Funko’s risk disclosures in SEC filings discussing potential impacts while “serious inventory problems bloomed” could’ve misled reasonable investors, the US Court of Appeals for the Ninth Circuit said in an opinion Wednesday. They plausibly pleaded an inference of intent or recklessness to defraud by former CEO Andrew Perlmutter and former Chief Financial Officer Jennifer Jung over these disclosures.
A reasonable fact-trier could find it ...