Grabar Law Office Investigates Claims on Behalf of Shareholders of Kartoon Studios Inc. (TOON) as Securities Fraud Class Action Partially Survives Motion to Dismiss

Philadelphia, Pennsylvania--(Newsfile Corp. - August 8, 2025) - Grabar Law Office is investigating claims on behalf of shareholders of Kartoon Studious Inc. (NYSE American: TOON) f/k/a Genius Brands International, Inc. (NASDAQ: GNUS). The investigation concerns whether certain officers and directors breached the fiduciary duties they owed to the company.

If you purchased Kartoon Studious Inc. (NYSE American: TOON) f/k/a Genius Brands International, Inc. (NASDAQ: GNUS) shares prior to March 11, 2020, and still hold shares today, you can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. Please visit https://grabarlaw.com/the-latest/toon-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.

WHY? On Augst 5, 2025, allegations made in a federal securities fraud class action complaint against Genius Brands, now known as Kartoon Studious Inc. (NYSE: TOON) partially survived a motion to dismiss.

The underlying Complaint alleges that throughout the Class Period, Kartoon Studious Inc. (NYSE American: TOON) f/k/a Genius Brands International, Inc. (NASDAQ: GNUS) made false and/or misleading statements regarding: (i) Nickelodeon's purported broadcast expansion of Genius's Rainbow Rangers cartoon; (ii) subscription fees for the Kartoon Channel!; and (iii) the Company's growth potential and overall prospects as a company. The Complaint further alleges that while the share price of Genius stock was artificially inflated due to these misstatements.

On appeal from the Court's order granting Defendants' motion to dismiss Plaintiffs' second amended complaint (SAC), the Ninth Circuit found that Plaintiffs plausibly alleged that "Genius's representations regarding PennyStocks in its May 7 SPA were misleading, and Genius's statements regarding Rainbow Rangers, Disney/Netflix, and Stan Lee caused [Plaintiffs'] losses." In re Genius Brands Int'l, Inc. Sec. Litig. (Genius II), 97 F.4th 1171, 1190 (9th Cir. 2024).

The district court then determined that "Plaintiffs' claims under Rule 10b-5(a) and (c) and under § 20(a) of the Exchange Act are adequately alleged as to the Rainbow Rangers statements."

WHAT YOU CAN DO NOW: If you purchased Kartoon Studious Inc. (NYSE: TOON) f/k/a Genius Brands International, Inc. (NASDAQ: GNUS) shares prior to March 11, 2020, and still hold shares today, you are encouraged to visit https://grabarlaw.com/the-latest/toon-shareholder-investigation/, contact Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085. You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever.

$TOON $GNUS #Kartoon

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