Funko Derivative Suit Stayed Pending Securities Class Outcome

Funko Inc. shareholders who filed derivative suits accusing company leadership of misleading them about holiday sales numbers must wait until a related securities class suit is resolved to proceed, a California federal judge said.

The shareholders had their U.S. District Court for the Central District of California suits consolidated in July. The derivative action is stayed until the court rules on a motion to dismiss the would-be securities class suit and all appeals are exhausted, Judge Virginia A. Phillips said Thursday.

Coordinating the derivative and class suits “will promote the efficient and orderly administration of justice,” Phillips said. The shareholders ...