#United States #New York #Lawsuit #NAPCO Security #Faruqi & Faruqi

Investigation of Napco Security Technologies by Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP, a prominent national securities law firm, has announced its investigation into potential claims against Napco Security Technologies, Inc. This investigation comes in light of significant losses incurred by investors, exceeding $75,000, during a specific timeframe between February 5, 2024, and February 3, 2025. The firm emphasizes the urgency for affected investors to take action, as they have until June 24, 2025, to seek the lead plaintiff position in a federal securities class action lawsuit filed against Napco.

Background on Napco Security Technologies

Napco Security Technologies, a well-known player in the security industry, has recently faced scrutiny following troubling financial disclosures. According to reports, the company allegedly misled investors regarding its expected growth, particularly within its hardware division. Statements made by executives invoked confidence in achieving ambitious fiscal growth targets, which were soon contradicted by actual sales figures.

The Financial Decline

On February 3, 2025, Napco reported its financial results for the second quarter of fiscal 2025. This disclosure shocked investors as it highlighted a substantial decline in hardware sales due to decreased demand from two of its major distributors. Furthermore, the company revised its long-term EBITDA margin target, citing uncertainty over achieving previously set goals. Following this revelation, Napco's stock plummeted from a closing market price of $36.70 on January 31, 2024, to $26.93 by February 3, 2025, marking a drop of approximately 26.62% in just one day.

Legal Implications

Faruqi & Faruqi is urging investors who have experienced losses to explore their legal rights. Potential class members who wish to serve as lead plaintiffs can submit their requests through their legal counsel. Importantly, participation in the lead plaintiff initiative is voluntary, and members do not lose their rights regarding any recovery based on their decision to serve.

Faruqi & Faruqi has a long history of representing investors and recovering significant sums since its establishment. They encourage anyone with relevant information—including whistleblowers and former employees—to come forward. This outreach aims to compile comprehensive information that could aid in building a strong case against Napco.

Next Steps for Investors

Affected investors are encouraged to reach out to Josh Wilson, a partner at Faruqi & Faruqi, directly at 877-247-4292 or 212-983-9330 (Ext. 1310). Additionally, they can visit the firm's website for more information on the ongoing Napco Security Technologies class action. As the situation develops, staying informed will be crucial for investors looking to protect their interests.

In summary, this investigation underscores the legal risks associated with corporate misrepresentation and the importance of transparency in communicating company performance to stakeholders. As this case unfolds, investors should remain vigilant and proactive in seeking remedies for any losses incurred due to the alleged misconduct of Napco Security Technologies.