A securities class action has been filed in the USDC – E.D.N.Y. against Napco Security Technologies, Inc. (NSSC) (“Napco” or the “Company”), on behalf of all persons and entities that purchased or otherwise acquired Napco common stock between February 5, 2024, and February 3, 2025, both dates inclusive (the “Class Period.
Napco develops, manufactures, and sells high-tech electronic security devices and provides cellular communication services for intrusion and fire alarm systems. The Company’s primary security products encompass access control systems, doorlocking products, intrusion and fire alarm systems, and video surveillance products. Napco’s income stems both from these direct hardware sales and recurring monthly subscription service for its cellular devices.
The claim arises on February 3, 2025, when Napco announced its financial results for the second quarter of fiscal 2025, revealing a significant reduction in hardware sales for the quarter.
The complaint alleges that Defendants provided overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Napco’s ability to forecast the demand for its products or otherwise the true state of Napco’s negotiating position with distributors; notably, that, despite making lofty long-term projections and claiming one-off setbacks to hardware sales, Napco’s forecasting processes fell short as sales continued to decline and, ultimately, derailed the Company’s long-term projections. Such statements absent these material facts caused Plaintiff and other shareholders to purchase Napco’s securities at artificially inflated prices.
As a result, 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.
If you purchased Napco common stock during the Class Period and would like to receive more information or join the action, please enter your contact information below for a FREE consultation and click “Submit Your Information”.