#United States #New York #Securities Fraud #NAPCO Security #Levi Korsinsky

Legal Action Against Napco Security Technologies

A significant class-action lawsuit has been launched against Napco Security Technologies, Inc. (NASDAQ: NSSC) by Levi & Korsinsky, LLP, representing investors who claim to have suffered financial losses due to alleged fraudulent activities between February 5, 2024, and February 3, 2025. This legal action seeks to secure compensation for affected investors.

Class Definition and Allegations

The lawsuit's purpose is to recover losses incurred by stakeholders during the specified period. According to the complaint, the defendants misled investors regarding the company's anticipated growth and the performance of its hardware division. Statements made included assurances about Napco's expected fiscal growth, primarily driven by the demand for hardware products. However, on February 3, 2025, the company announced disappointing financial results for the second quarter of fiscal 2025. The significant drop in hardware sales was attributed to decreased transactions from two of the company's larger distributors.

As a result of this unforeseen downturn, Napco also retracted its previous long-term EBITDA margin target of 45%, acknowledging uncertainty in meeting that goal by the end of fiscal 2026. This disappointing news led to a steep decline in the company's stock price, plummeting from a market closing price of $36.70 on January 31, 2024, to $26.93 by February 3, 2025—marking a staggering decrease of approximately 26.62% in just one day.

Next Steps for Investors

Investors who experienced financial losses during this timeframe are encouraged to act quickly. They have until June 24, 2025, to request that the court appoint them as lead plaintiffs in this class action. It is crucial to note that participation in the financial recovery process does not necessitate being appointed as a lead plaintiff; affected individuals can still benefit from any potential compensation without assuming that role.

No Cost to Participate

One of the advantages of participating in this class action lawsuit is that it involves no out-of-pocket costs or legal fees for class members. Levi & Korsinsky aims to provide an accessible route for investors to seek recompense without incurring any financial burden.

Why Choose Levi & Korsinsky?

Levi & Korsinsky, known for its extensive experience in securities litigation, has successfully secured substantial compensation for shareholders over the past two decades. The firm has established a commendable reputation in the legal landscape, having been listed in ISS Securities Class Action Services’ Top 50 Report for seven consecutive years as a leading securities litigation firm in the United States. With a dedicated team of over 70 professionals, they are well-equipped to represent investors navigating the complexities of class-action lawsuits.

Contact Information

For those wishing to learn more about the class action or seeking to participate, Levi & Korsinsky provides a range of contact options. Investors should not hesitate to reach out via email at email protected] or call (212) 363-7500 for further assistance. Additionally, more detailed information on the lawsuit is available [here.

Investors are urged to act swiftly and secure their rightful claims in light of the troubling developments concerning Napco Security Technologies, Inc.