SEC Settles Jon P. Kipp Funko Insider Trading Case for $1.07 Million
SEC settles insider-trading case against Jon P. Kipp over 247,335 Funko shares, with $1.073 million due for losses avoided before July 2023 CEO leave news.
Summary
The SEC filed a settled insider-trading action against Jon P. Kipp of Kirkland, Washington, on September 14, 2026, in the U.S. District Court for the Western District of Washington. The complaint, Securities and Exchange Commission v. Jon P. Kipp, No. 26-cv-03289, alleges Funko Inc.’s then-CEO texted Kipp on July 11, 2023, that the board had placed the CEO on sabbatical and that the executive planned to leave permanently. Kipp, a decades-long friend and retired Funko colleague of the CEO, allegedly sold all 247,335 Funko shares he owned on July 13 before the company announced the leave, avoiding approximately $483,746.40 in losses when the stock fell the next day.
Without admitting the allegations, Kipp consented to a final judgment, subject to court approval, permanently enjoining violations of Exchange Act Section 10(b) and Rule 10b-5. He would pay $483,746.40 in disgorgement, $105,516.93 in prejudgment interest and a $483,746.40 civil penalty, totaling $1,073,009.73. The SEC published Litigation Release No. 26640 on September 15, 2026. Duncan C. Simpson LaGoy conducted the investigation with Russell R. O’Brien, supervised by Chrissy Filipp, Rahul Kolhatkar and Jason H. Lee of the SEC’s San Francisco Regional Office.
Positives
- The proposed judgment would recover $1,073,009.73 through disgorgement, prejudgment interest and a civil penalty.
- The $483,746.40 disgorgement equals the approximate losses Kipp allegedly avoided by selling before Funko’s announcement.
- The proposed permanent injunction would prohibit Kipp from future violations of Exchange Act Section 10(b) and Rule 10b-5.
Risks & concerns
- Kipp allegedly sold all 247,335 Funko shares after receiving confidential information from the company’s then-CEO.
- Funko’s stock fell the day after its July 13, 2023 announcement that the then-CEO would take leave and cease serving as CEO.
- The allegations involve confidential board and executive-departure information shared through a decades-long personal friendship.
- The settlement remains subject to approval by the U.S. District Court for the Western District of Washington.