Funko toy maker will hand out $2,500 payments to Americans from $2m settlement – but you must meet the criteria

TOYMAKER Funko will pay out millions of dollars to resolve claims it artificially inflated its stock price.

Shareholders have sued the company, alleging that officials misled them and the public.

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The litigation says that individuals made “false and misleading statements” regarding the company’s financial outlook.

Instead, they allegedly made the company appear to be in better shape than it really was, preventing stockholders 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’ lawyers.

But shareholders could get payouts as well.

Each plaintiff will get $2,500 if the settlement is approved.

The defendants did not admit any wrongdoing in the case.

WHO’S INVOLVED

According to Retail Dive , many Funko executives are named in the suit.

Former CEO Brian Mariotti is one of the defendants.

He stepped down from the company in 2023.

Board members and other financial officers were also implicated in the suit.

There are a number of plaintiffs who could get money, as the settlement combined multiple suits.

Funko has said all shareholders could have their rights impacted by the settlement, however.

The final hearing to approve or reject the agreement will take place in November

Funko’s website offers more details .

MORE SETTLEMENTS

Class actions offer money for problems experienced by large groups of people.

U-Haul is paying out $5 million after a data breach compromised customer information.

What's a class-action settlement?

Class action lawsuits offer groups of people, or 'classes,' a way to band together in court.

These suits are often brought by one or a few people who allege a company or other entity has wronged a large group of people.

When a suit becomes a class action, it extends to all “class members,” or people who may have similar complaints to those who filed the suit.

Companies often settle class actions – offering payment to class members who typically waive their right to pursue further legal action by accepting money.

These payout agreements frequently include statements by the defendant denying wrongdoing. Companies tend to settle class actions to avoid the costs of further litigation.

Pollution, discrimination, or false advertising are a few examples of what can land a class action on a company’s doorstep.

Payouts will be around $100, but the deadline is coming in October.

Visa and Mastercard are paying billions after customers paid allegedly excessive fees .

The deadline in that case is August 30.

A USAA lawsuit is paying out military service members.

You could get $100 from a CPAP settlement .