Funko Inc. $5.4 Million Securities Class Action Settlement

Investors who held Funko Inc. Class A common stock at any time between Nov. 2, 2017, and Oct. 21, 2025, may be eligible to claim a cash payment from a class action settlement.

Funko Inc. and several individual and corporate defendants agreed to pay $5.4 million to settle a class action lawsuit alleging they breached their fiduciary duties in connection with Funko's Up-C corporate structure, tax distributions and 2022 recapitalization transaction. The lawsuit claimed certain pre-IPO owners benefited twice from tax distributions at the expense of Funko's public Class A stockholders.

Who are the class members?

The settlement includes all holders of Funko Class A common stock during the period from Nov. 2, 2017, through Oct. 21, 2025, inclusive.

Additional details

• Both individuals and entities can be class members.
• The settlement includes shareholders who held stock directly and those who held through a broker or other nominee.
• The class is certified solely for settlement purposes and is a non-opt-out class under Delaware Court of Chancery Rules 23(a), 23(b)(1) and 23(b)(2), meaning class members cannot exclude themselves from the settlement.

How much can class members get?

The total settlement fund is $5,400,000. The amount each class member receives depends on several factors:

• The number of eligible shares held at the close of trading on Oct. 21, 2025
• The total number of eligible shares held by all class members

The settlement administrator will distribute the net settlement fund on a per-share, pro rata basis according to the court-approved plan of allocation:

• Each eligible share will receive an equal portion of the net settlement fund.
• The per-share recovery equals the total net settlement fund divided by the total number of eligible shares.
• Eligible shares are shares of Funko Class A common stock held at the close of trading on Oct. 21, 2025, other than those held by excluded persons.
• If any balance remains after the initial distribution, the settlement administrator will, if feasible, redistribute it to class members who received and deposited their initial payment.
• If further distribution is not feasible, the settlement administrator will donate the remaining funds to the Delaware Combined Campaign for Justice.

How to claim a Funko securities class action settlement payment

Class members do not need to file a claim form or take any other action to receive a payment. The settlement administrator will identify eligible beneficial owners and record holders based on records as of the close of trading on Oct. 21, 2025, and will distribute payments automatically.

Settlement administrator's mailing address: Funko Stockholder Settlement, c/o A.B. Data Ltd., P.O. Box 173024, Milwaukee, WI 53217

$5.4 million settlement fund

The $5,400,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $945,000
• Attorneys' expenses: Up to $120,000
• Service award to plaintiff: Up to $5,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Fairness hearing: July 8, 2026

When is the Funko securities class action settlement payout date?

The settlement administrator will issue payments after the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Funko and related defendants breached their fiduciary duties to Class A stockholders in connection with the company's Up-C corporate structure, tax distributions and a 2022 recapitalization transaction. The plaintiff claimed certain pre-IPO owners benefited twice from tax distributions at the expense of public Class A stockholders.

Defendants denied all allegations of wrongdoing but agreed to settle to avoid the costs, risks and delays of continued litigation.

Sources

1. Class notice
2. Settlement agreement