Funko Agrees to Pay $8 Million to Resolve Profit Double-Dip Case

Funko Inc.'s affiliates and financiers have agreed to pay $8.4 million to end litigation over profit double-dipping allegations tied to the toymaker’s status as an umbrella partnership rather than an ordinary corporation.

The settlement, disclosed Wednesday, would resolve claims that ex-CEO Brian Mariotti and the company’s backers manipulated its complex structure to seize distributions destined for public investors. The accord comes two years after a Delaware Chancery Court judge called it “reasonably conceivable” that Mariotti schemed with Acon Investments LLC and Fundamental Capital LLC to trap cash with a privately held subsidiary instead of letting the money flow upstream to ...