$5.4M Funko Stockholder Breach Fiduciary Duty Settlement, Are You Eligible to Receive Payment?

The Funko Stockholder Settlement is a breach of fiduciary duty class action where eligible holders of Funko Class A common stock from November 2, 2017, to October 21, 2025, can receive a pro rata payment from a $5,400,000 fund — and no claim form is required. Defendants include Funko, Inc., its former officers, directors, and major pre-IPO investors ACON Investments and Fundamental Capital, LLC. The settlement received preliminary approval and awaits a final approval hearing on July 8, 2026, in the Delaware Court of Chancery.

Quick-Facts 

Field	Detail
Settlement Amount	$5,400,000
Claim Deadline	No claim form required — payment is automatic for eligible shareholders
Who Qualifies	Holders of Funko Class A common stock from November 2, 2017, to October 21, 2025, except Excluded Persons
Payout Per Person	TBD — determined on a pro rata per-share basis after fees, taxes, and administrative costs are deducted from the Net Settlement Fund
Proof Required	No
Settlement Status	Proposed — pending final court approval at July 8, 2026, hearing
Administrator	A.B. Data, Ltd.
Official Website	funkostockholdersettlement.com
Last Updated	April 24, 2026

Current Status & What Happens Next

• Objection deadline: Class Members who wish to object to the settlement, the Plan of Allocation, or Plaintiff’s Counsel’s fee request must submit a written objection received no later than June 15, 2026.
• Final approval hearing: The Court of Chancery of the State of Delaware will hold the Settlement Hearing on July 8, 2026, at 11:00 a.m. at the Leonard L. Williams Justice Center, 500 North King Street, Wilmington, Delaware 19801.
• Payment timeline: TBD — the Net Settlement Fund will distribute to eligible shareholders only after the Judgment becomes Final and all appeals periods expire.

What Is the Funko Lawsuit About? Lynch v. Mariotti, et al., C.A. No. 2022-0051-NAC

This case centers on alleged breach of fiduciary duty under Delaware common law, brought against Funko, Inc.’s directors, officers, and controlling pre-IPO stockholders in the Court of Chancery of the State of Delaware.

When Funko completed its 2017 IPO, it used an Up-C corporate structure — a two-class stock arrangement where public investors held Class A shares and pre-IPO owners held Class B shares tied to economic interests in Funko Acquisition Holdings, L.L.C. (“FAH, LLC”). The lawsuit alleged that pre-IPO owners — including CEO Brian Mariotti, ACON Investments, and Fundamental Capital, LLC — engaged in a “double dip”: they received tax distributions directly from FAH, LLC, then exchanged their units for Class A stock without the board ever passing the value of those excess distributions on to public shareholders. Plaintiff argued this allowed insiders to capture value twice at the expense of ordinary Class A stockholders.

Litigation began in January 2022 when Class A stockholder Leo Schumacher filed suit in the Delaware Court of Chancery. In May 2022, Funko completed a $74 million recapitalization that Defendants say mooted the claims — but the Court denied Defendants’ motion to dismiss in December 2023, allowing the case to proceed. In October 2025, the parties reached a $5,400,000 settlement through mediation, and the formal Stipulation was filed on April 8, 2026. Plaintiff Erik Lynch (who replaced original plaintiff Schumacher in late 2024) continues to believe the claims have merit but agrees the settlement provides immediate, certain value to the class.

Who Is Eligible for the Funko Settlement?

• You may qualify if you held shares of Funko Class A common stock at any point during the Class Period from November 2, 2017, to October 21, 2025, inclusive.
• You may qualify if you held your shares as the ultimate beneficial owner through a brokerage or financial institution (DTC Participant) as of the close of trading on October 21, 2025.
• You may qualify if you held Funko Class A shares as a record holder (other than through Cede/DTC) as of the close of trading on October 21, 2025.
• You do NOT qualify if you are one of the Excluded Persons: Funko, Inc. itself, ACON Investments, Fundamental Capital, LLC, the named Individual Defendants (Mariotti, Brotman, Dellomo, Kriger, Nickel, Perlmutter), The Chernin Group, or their immediate families and controlled entities.

Important: This is a non-opt-out class under Delaware Court of Chancery Rules 23(a), 23(b)(1), and 23(b)(2). You cannot exclude yourself from the class or the settlement.

How Much Money Can You Get from the Funko Settlement?

The full $5,400,000 Settlement Amount will go into an interest-bearing escrow account. From that fund, the administrator deducts:

1. Administrative costs (up to $105,000 pre-approval without court order)
2. Plaintiff’s Counsel’s attorney fee application — capped at 17.5% of the settlement amount ($945,000 maximum) plus up to $120,000 in litigation expenses
3. Taxes and tax expenses on fund earnings

What remains is the Net Settlement Fund, distributed to eligible shareholders on a pro rata per-share basis. Every eligible shareholder who held Class A shares at the close of trading on October 21, 2025, receives a payment equal to: their eligible shares × the per-share recovery (Net Settlement Fund ÷ total eligible shares). For context on how pro rata distributions work in similar breach-of-fiduciary-duty cases, see our related article on stockholder class action settlements.

No minimum or maximum payout per person is confirmed — the actual per-share amount depends on the total number of eligible shares and final court-approved deductions. TBD — exact per-share figure will be calculated by A.B. Data, Ltd. after the Effective Date.

Separately, Funko’s insurers already paid Plaintiff’s Counsel $3,000,000 to resolve a prior interim fee application related to Funko’s 2022 recapitalization. That payment does not reduce the $5,400,000 Settlement Fund available to class members.

Step-by-Step: How to Receive Your Funko Settlement Payment

No claim form is required. This settlement uses automatic distribution — if you are an eligible shareholder, A.B. Data will locate you through stock transfer records and DTC participant data.

Step 1 — Confirm you held Funko Class A common stock (FNKO on NASDAQ) at any point from November 2, 2017, to October 21, 2025.

Step 2 — Ensure your brokerage or financial institution has your current mailing address on file, as payments route through DTC Participants directly to beneficial owners.

Step 3 — If you hold shares as a direct record holder (not through a brokerage), verify your contact details with Funko’s transfer agent to ensure the administrator can reach you.

Step 4 — If you receive the official Notice of Pendency from A.B. Data by mail, review it carefully — it confirms your status and provides contact information.

Step 5 — Wait for final court approval at the July 8, 2026, hearing and the expiration of all appeal periods before funds are released.

Step 6 — Save the confirmation number or documentation from your Notice mailing for your records.

Estimated time to act: Under 5 minutes to verify your eligibility and brokerage address.

Important Deadlines & Dates

Milestone	Date
Stipulation Filed with Court	April 8, 2026
Class Period End (Settlement Date for Shares)	October 21, 2025
Objection / Notice of Intent to Appear Deadline	June 15, 2026
Final Approval Hearing	July 8, 2026, at 11:00 a.m. ET
Claims Period Opens	No claim form required — automatic distribution
Claim Filing Deadline	Not applicable — no claim form process
Opt-Out Deadline	Not applicable — non-opt-out class
Expected Payment Date	TBD — after Judgment becomes Final and all appeal periods expire

Frequently Asked Questions

Do I need a lawyer to receive my payment? 

No. The Funko settlement uses automatic distribution — A.B. Data, Ltd. identifies eligible shareholders directly through Funko’s stock transfer records and DTC brokerage data. You do not need to hire an attorney or file any paperwork to receive your pro rata share of the Net Settlement Fund.

Is this settlement legitimate? 

Yes. The settlement is administered under the supervision of the Delaware Court of Chancery in Lynch v. Mariotti, et al., C.A. No. 2022-0051-NAC. The administrator is A.B. Data, Ltd., a well-established court-appointed claims administrator. The official website is funkostockholdersettlement.com. You can call 1-877-311-3743 to verify your status.

When will I receive my payment? 

The exact payment date is TBD — funds will not distribute until the Judgment becomes Final, which requires the July 8, 2026, final approval hearing to go forward without a successful appeal. If any party files an appeal after final approval, distribution will wait until that appeal resolves. Check funkostockholdersettlement.com for updates.

What if I missed the claim deadline?

 There is no claim filing deadline because no claim form is required. However, your shares must have been held during the Class Period (November 2, 2017 – October 21, 2025) to qualify. Shares purchased after October 21, 2025, do not count toward your eligible share position.

Will this settlement payment affect my taxes? 

Possibly. Settlement payments from securities class actions may constitute taxable income depending on your personal tax situation. The settlement fund itself pays taxes on earnings through the escrow account, but your individual payment may still carry tax implications. Consult a qualified tax professional for advice specific to your situation — this article does not constitute tax advice.

Why can’t I opt out of this settlement? 

Under Delaware Court of Chancery Rules 23(b)(1) and 23(b)(2), this case was certified as a non-opt-out class action. The court determined that individual opt-outs would be inconsistent with the nature of the fiduciary duty claims, which affect all Class A shareholders collectively. All eligible class members are bound by the settlement once it receives final approval.

What was the “double dip” alleged in this lawsuit? 

The lawsuit alleged that pre-IPO owners — including ACON Investments and CEO Brian Mariotti — received tax distributions from FAH, LLC, then exchanged their LLC units for Class A stock without the board passing equivalent value to public shareholders. This structure allegedly let insiders benefit twice from the same pool of funds. Defendants deny all wrongdoing and maintain no Class A stockholders were harmed.

How do I object to the settlement if I disagree with it? 

Class Members who wish to object must file a written, signed objection with the Delaware Court of Chancery and serve it on all counsel of record so that it is received no later than June 15, 2026. Your objection must include your name, address, documentation proving class membership, and a detailed statement of your grounds. Visit funkostockholdersettlement.com or call 1-877-311-3743 for full instructions.

Sources & References

• Official Settlement Administrator Website: funkostockholdersettlement.com
• Stipulation and Agreement of Compromise and Settlement, C.A. No. 2022-0051-NAC (April 8, 2026): Full Document (PDF)
• Court: Court of Chancery of the State of Delaware, Leonard L. Williams Justice Center, 500 North King Street, Wilmington, Delaware 19801

Prepared by the AllAboutLawyer.com Editorial Team and reviewed for factual accuracy against official court records and the settlement administrator website on April 24, 2026. Last Updated: April 24, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.