Napco Security Technologies, Inc. Class Action Lawsuit - NSSC

According to the complaint, defendants provided investors with material information concerning Napco’s overall expected growth and strength in the Company’s hardware division. Defendants’ statements included, among other things, confidence in Napco’s ability to achieve its fiscal 2026 growth projections on back of its ability to both appropriately forecast and execute upon the alleged demand for its hardware products. On February 3, 2025, Napco announced its financial results for the second quarter of fiscal 2025, revealing a significant reduction in hardware sales for the quarter. The Company attributed the decline “primarily … to reduced sales from 2 of the company’s larger distributors.” As a result of the setback in sales, defendants additionally pulled back their long-term 45% EBITDA margin target, as they “don’t know” if the target can be achieved by the end of fiscal 2026. Following this news, Napco’s common stock declined dramatically. From a closing market price of $36.70 per share on January 31, 2024, Napco’s stock price fell to $26.93 per share on February 3, 2025, a decline of about 26.62% in the span of just a single day.

In order to be eligible to join the NSSC class action lawsuit, you must have incurred a loss on shares of Napco purchased during the class period listed above.

If you suffered a loss in Napco during the relevant time frame or pursuant to the relevant offering(s), you have until June 24, 2025 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.