#United States #New York #Class Action #Gross Law Firm #NAPCO Security

The Gross Law Firm Updates Napco Investors on Class Action Lawsuit

On June 19, 2025, The Gross Law Firm issued a crucial notice to shareholders of Napco Security Technologies, Inc. (NASDA: NSSC), urging them to be aware of an impending class action lawsuit. This lawsuit stems from allegations concerning Napco's misleading statements regarding its product and growth prospects, particularly in its hardware division.

Key Details about the Class Action

Shareholders who purchased shares during the class action period between February 5, 2024 and February 3, 2025, are strongly encouraged to consider their options regarding participation in the lawsuit. Appointing a lead plaintiff is an option, but it is not mandatory for claimants seeking a recovery. For those interested, the deadline to register as a potential lead plaintiff is set for June 24, 2025.

Allegations Against Napco

The lawsuit arises from claims that Napco provided misleading assurances regarding its financial health and expected growth, particularly emphasizing confidence in achieving fiscal goals. Allegations note that during this period, Napco misrepresented its expected sales and demand for its hardware offerings—only to reveal a significant drop in hardware sales during their quarterly report for the second fiscal quarter of 2025. The financial report disclosed a stark reduction in hardware sales, attributing the decline to adverse market conditions and reduced orders from major distributors. This revelation resulted in a dramatic plunge in Napco’s share price, falling from $36.70 on January 31, 2024, to $26.93 by February 3, marking a decline of approximately 26.62% in just one day.

Furthermore, the company had to retract its ambitious 45% EBITDA margin target due to uncertainties regarding its achievement, citing a lack of clarity on demand forecasts. This significant setback has prompted shareholders to take action, as many are left grappling with the financial fallout from these changes.

Next Steps for Investors

Affected shareholders have been encouraged to register for the class action lawsuit, and by doing so, they will also gain access to a portfolio monitoring software that will keep them informed throughout the litigation process.

The Gross Law Firm emphasizes that engaging in this action is cost-free and available to all eligible investors, encouraging them not to delay their registration. Once you have registered, you will filed into an information stream to ensure you stay updated on any developments related to the case.

Why Choose The Gross Law Firm?

The Gross Law Firm holds a national reputation for steering class action lawsuits aimed at protecting investors' rights. With a fundamental commitment to ensuring accountability in corporate actions, they aim to represent those who have borne losses due to deceptive practices in the marketplace.

As investors ponder whether to take steps in this ongoing litigation, the Gross Law Firm remains at the frontline of ensuring that individuals affected by this situation are well-informed and have access to the necessary resources to pursue their claims. They appeal to all Napco shareholders to reach out and assess their standing ahead of the critical deadline approaching in June.

For questions or to express intent to participate, shareholders are directed to follow the link provided for registration on the Gross Law website. Further inquiries can also be directed to their office based in New York.

Investors should remain proactive about their interests during this period of uncertainty and ensure they are positioned to contribute to their legal recourse as shareholders of Napco Security Technologies.