Shareholders of Napco Security Technologies Encouraged to Participate in Class Action Lawsuit

Notice to Napco Security Technologies Shareholders

Recent developments signal a concerning downturn for investors of Napco Security Technologies, Inc. (NASDAQ: NSSC). Shareholders who bought shares during the class action period from February 5, 2024, to February 3, 2025, are being urged to join a class action lawsuit initiated by The Gross Law Firm. This legal action aims to address significant losses incurred by investors following a troubling report from the company.

Background of the Case

In early February 2025, Napco announced its financial results for the second quarter of fiscal 2025. The announcement turned out to be disastrous, revealing a steep decline in hardware sales. Specifically, the company attributed this decline to reduced sales from two major distributors. As a direct consequence, Napco retracted its ambitious goal of achieving a 45% EBITDA margin by the end of fiscal 2026, which raised further doubts about its financial health.

The sharp decline in sales sent shockwaves through the stock market. From a closing price of $36.70 per share on January 31, 2024, Napco’s stock plummeted to $26.93 per share just two days later—a staggering drop of approximately 26.62% in a matter of hours. This rapid decline has left investors questioning the reliability of management’s previous assurances regarding the strength and growth potential of Napco’s hardware division.

Why Join This Class Action?

Investors who suffered financial losses on their Napco investments have a crucial opportunity to seek justice. By participating in this class action, shareholders can join forces to recover losses attributed to misleading statements made by the company's management.

It’s important to note that appointing a lead plaintiff is not a requirement for participating in this class action. Shareholders interested in registration can do so via a simple online form and thus gain access to ongoing updates regarding the lawsuit's progress. Those who register will also benefit from a portfolio monitoring service that provides consistent status updates throughout the lifecycle of the legal proceedings.

Deadlines and Next Steps

The deadline for shareholders to register for the class action lawsuit is June 24, 2025. The Gross Law Firm emphasizes the urgency for investors to act promptly in order to ensure their voices are heard in this matter. Notably, participation in this class action carries no associated costs or obligations for the investors.

About The Gross Law Firm

The Gross Law Firm is recognized nationally for its commitment to addressing issues related to shareholder protection and corporate accountability. Their dedication to transparency and the pursuit of justice is paramount, particularly in cases where investor trust has been breached due to misinformation and deceit. The firm is embarking on this legal endeavor to ensure that Napco Security Technologies is held responsible for the impact of their professional conduct on shareholders.

For affected investors, now is the time to take action. By standing together, shareholders can seek not only financial restitution but also reinforce the importance of ethical governance and business practices within public companies.

For more information and to register for the class action lawsuit, visit The Gross Law Firm’s website.

Stay informed and ensure your rights as an investor are protected.