The Gross Law Firm Initiates Securities Class Action for Napco Security Technologies Shareholders

The Gross Law Firm Launches Securities Class Action

The Gross Law Firm has officially initiated a securities class action lawsuit on behalf of shareholders of Napco Security Technologies, Inc. (NASDAQ: NSSC). This legal action targets investors who purchased shares of Napco during the designated period from February 5, 2024, to February 3, 2025. The firm encourages affected shareholders to reach out for information on possibly being appointed as lead plaintiffs, although taking on this role is not a requirement to partake in any potential recovery.

Allegations Against Napco Security Technologies

As per the details disclosed in the complaint, the defendants are accused of providing misleading information to investors about the anticipated growth and performance of Napco’s hardware division. According to the statements made, there was significant confidence in Napco's ability to meet projected fiscal growth in 2026, predicated on adequate forecasting and fulfillment of demand for their hardware products. However, this confidence was shattered when Napco announced disappointing financial results for the second quarter of fiscal 2025 on February 3, 2025, revealing a sharp decline in hardware sales attributed mostly to reduced sales from two major distributors.

Following this announcement, the company also retracted its previously stated long-term EBITDA margin target of 45%, expressing uncertainty about achieving this goal before the end of fiscal 2026. This wave of disappointing news prompted a dramatic drop in Napco’s stock price, which slid from a closing price of $36.70 per share at the end of January 2024 to $26.93 on February 3, 2025. This equated to a staggering loss of approximately 26.62% in just one day, causing significant financial damage to investors who trusted the statements made by the company’s leadership.

Important Dates and Next Steps for Shareholders

Shareholders are urged to register without delay, as the deadline to take action and seek lead plaintiff status is set for June 24, 2025. Interested parties can complete a registration form on the specified platform. Upon registering as shareholders who purchased shares of Napco during the aforementioned timeframe, individuals will be enrolled in a portfolio monitoring service. This service will keep them updated with the status of the ongoing case throughout its lifecycle. Notably, there is no financial obligation for shareholders who wish to participate in this case.

Why Choose The Gross Law Firm?

The Gross Law Firm is widely recognized for its dedication to protecting investor rights experiencing losses due to deceitful, fraudulent, or unlawful business practices. Their commitment lies in fostering responsible corporate behavior and ensuring that companies uphold ethical practices. They actively seek financial recovery on behalf of those investors who suffered losses owing to misleading information or omissions that led to inflated stock values.

In conclusion, if you purchased shares of Napco Security Technologies during the class period, it’s crucial to act promptly. The Gross Law Firm maintains a strong reputation for supporting consumers and advocates fighting against corporate misconduct. Investors should not miss the opportunity to secure justice for their losses in this ongoing case.

For more details or to initiate your participation in the lawsuit, please contact The Gross Law Firm directly via their official communication channels.