Investors Affected by Napco Security Technologies Securities Lawsuit Must Act Before June 2025

Napco Security Technologies Faces Class Action Lawsuit

In a recent development, Napco Security Technologies, Inc. (NASDAQ: NSSC) is embroiled in a class action lawsuit aimed at addressing alleged violations of securities laws. Levi & Korsinsky, LLP, the legal firm behind the notification, has reached out to affected investors, urging them to get in touch before June 24, 2025, to discuss their rights in this matter.

Overview of the Lawsuit

The class action seeks to recover losses incurred by investors from February 5, 2024, to February 3, 2025, due to purported securities fraud. The lawsuit highlights significant claims regarding the misleading information shared by Napco's executives about the company's expected growth trajectory, particularly concerning its hardware division. Specifically, the defendants allegedly expressed unwarranted confidence in Napco's capability to meet its financial projections for fiscal year 2026, showcasing what they claimed was an ability to accurately forecast market demand.

However, the situation took a drastic turn on February 3, 2025, when Napco disclosed its financial results for the second quarter of fiscal 2025. The results showed a stark decline in hardware sales, attributed primarily to weakened performance from two of its largest distributors. Compounding the issue, company representatives announced they were retracting their previous long-term EBITDA margin target of 45%, citing uncertainty about whether they could achieve it by the end of the fiscal year 2026. Following the announcement, Napco's stock plummeted by approximately 26.62%, dropping from $36.70 per share on January 31, 2024, to only $26.93 per share.

Investor Rights and Next Steps

For those investors who suffered financial losses during the specified timeframe, time is of the essence. The deadline to file a request to be appointed as lead plaintiff in this case is looming, with June 24, 2025, marking the crucial date. Moreover, it's vital to note that participating in the class action does not necessitate serving as a lead plaintiff, providing multiple avenues for recovery options without the burden of associated costs.

Levi & Korsinsky emphasizes that class members are entitled to compensation without incurring out-of-pocket expenses or fees. This initiative reflects their commitment to ensuring that shareholders receive justice without financial risk.

Why Choose Levi & Korsinsky?

For over 20 years, Levi & Korsinsky has established a strong reputation in the realm of securities litigation, successfully securing hundreds of millions of dollars for aggrieved shareholders. The firm has been recognized consistently in ISS Securities Class Action Services' Top 50 Report as one of the leading securities litigation firms in the United States. With a dedicated team of over 70 professionals, the firm is well-equipped to navigate complex legal challenges, advocating for investors' rights vigorously.

Contact Information

Investors looking for more information or those who wish to discuss their situation can reach out to Joseph E. Levi, Esq. at Levi & Korsinsky. Interested parties can contact him via email at [email protected] or by phone at (212) 363-7500. For more details on the case and how to participate, visit the official submission form linked via Levi & Korsinsky’s website.

This lawsuit against Napco Security Technologies serves as a reminder of the risks associated with investing and the importance of safeguarding investor rights. By acting swiftly, impacted investors can ensure they are part of this critical legal action aimed at holding companies accountable for their disclosures and business practices.