Construction Laborers Pension Trust of Greater St. Louis v. Funko Inc

FOR PUBLICATION

UNITED STATES COURT OF APPEALS

FOR THE NINTH CIRCUIT

CONSTRUCTION LABORERS No. 24-4909

PENSION TRUST OF GREATER

D.C. No. ST. LOUIS, Lead Plaintiff; PAUL 2:23-cv-00824-

HADDOCK,

JLR

Plaintiffs - Appellants,

OPINION

and

JONATHAN STUDEN,

Plaintiff,

v.

FUNKO INC; ANDREW

PERLMUTTER; JENNIFER FALL

JUNG,

Defendants - Appellees.

Appeal from the United States District Court for the Western District of Washington James L. Robart, District Judge, Presiding

Argued and Submitted May 23, 2025 San Francisco, California Filed February 4, 2026

Before: Marsha S. Berzon, Michelle T. Friedland, and Salvador Mendoza, Jr., Circuit Judges.

Opinion by Judge Mendoza

SUMMARY *

Securities Fraud

The panel affirmed in part and reversed in part the district court’s dismissal, for failure to state a claim, of an action under §§ 10(b) and 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5 against Funko, Inc., and two of its officers. Funko’s share price lost more than half its value when millions of its pop culture collectibles were written off at a loss of tens of millions of dollars. Funko shareholders alleged that…