TOYMAKER Funko will pay millions of dollars to settle allegations that it artificially inflated its stock price.
Shareholders sued the company, claiming authorities misled them and the public.
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The litigation says individuals made “false and misleading statements” about the company’s financial prospects.
Instead, they allegedly made the company appear to be better off than it actually was, preventing shareholders from making an informed decision about whether to keep or sell their shares in the company.
As a result of the settlement, Funko’s insurers will pay $2,150,000 to the plaintiffs’ attorneys.
But shareholders could also receive payments.
Each plaintiff will receive $2,500 if the settlement is approved.
The defendants did not admit any wrongdoing in the case.
WHO IS INVOLVED
According to Diving into Retailmany Funko executives are named in the lawsuit.
Former CEO Brian Mariotti is one of the defendants.
He left the company in 2023.
Board members and other chief financial officers were also implicated in the lawsuit.
Multiple plaintiffs could receive money as the settlement combined several lawsuits.
Funko said, however, that all shareholders may have their rights affected by the agreement.
The final hearing to approve or reject the agreement will take place in November
The Funko website offers more details.
MORE SETTLEMENTS
Class actions provide money for problems faced by large groups of people.
U-Haul is paying $5 million after a data breach compromised customer information.
What is a class action settlement?
Class action lawsuits offer groups of people, or “classes,” a way to come together in court.
These lawsuits are often filed by one or a few people who allege that a company or other entity has harmed a large group of people.
When a lawsuit becomes a class action, it extends to all “class members,” or people who may have similar claims to those who filed the lawsuit.
Companies often settle class actions – offering payment to class members who typically waive their right to pursue legal action by accepting money.
These payment agreements often include statements from the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.
Pollution, discrimination or false advertising are some examples of what can lead to a class action lawsuit at a company’s door.
Payments will be around US$100, but the deadline will be in October.
Visa and Mastercard are paying billions after customers were charged allegedly excessive fees.
The deadline in this case is August 30th.
A USAA lawsuit is paying military service members.
You could get $100 off a CPAP deal.
This story originally appeared on The-sun.com read the full story
