#USA #Los Angeles #Schall Law Firm #Securities Fraud #NAPCO Security

NSSC Investors: Join Class Action Against Napco Security Technologies

The Schall Law Firm, a prominent national firm specializing in shareholder rights, has sent a reminder to investors that there is an opportunity to participate in a class action lawsuit against Napco Security Technologies, Inc. (NASDAQ: NSSC). This lawsuit is premised on accusations of securities fraud, specifically violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 set forth by the U.S. Securities and Exchange Commission.

What Happened?

According to the firm, stockholders who invested in Napco between February 5, 2024, and February 3, 2025, may be eligible to join the lawsuit. The allegations point to misleading and false statements made by the company regarding its growth projections and customer demand for its hardware products. Notably, when Napco revealed its second-quarter financial results on February 3, 2025, it disclosed a decrease in hardware sales, contradicting earlier claims. The company attributed this decline to reduced purchases from two of its larger distributors, and further withdrew its long-term EBITDA margin target of 45% without certainty about its feasibility.

These developments led to investor losses as the true state of Napco's performance was disclosed, revealing that earlier public assertions were misleading and not representative of the ongoing scenario within the company. The Schall Law Firm encourages any investors who may have sustained losses during this period to reach out to them by June 24, 2025, to discuss their options and rights.

Joining the Class Action

For shareholders who believe they have suffered losses due to these actions, the firm invites you to join the case. Participation in a class action can be a significant step towards recovering any financial damages incurred as a result of Napco’s alleged misrepresentation of facts. Potential plaintiffs should consider contacting Brian Schall from the Schall Law Firm, located at 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, or via telephone at 310-301-3335, to initiate discussions regarding their rights free of charge. There is also the option to reach out through the firm's website or via email.

Legal Framework

It is essential to note that while the lawsuit is in motion, the class has not yet received court certification. Hence, until certification happens, individuals joining the case may not yet be represented by an attorney. Taking no action would mean remaining an absent class member and potentially losing any right to claim financial recovery.

In summary, the Schall Law Firm’s reminder serves to empower investors who may have been impacted by Napco Security Technologies' alleged securities fraud. As the legal landscape continues to evolve, this class action presents a pivotal opportunity for investors seeking restitution for financial losses believed to have been caused by the company's actions. Investors are encouraged to act swiftly to protect their rights and explore potential avenues for recovery.