Faruqi & Faruqi Issues Reminder for Napco Security Technologies Investors on Class Action Deadline

Reminder for Napco Security Technologies Investors

Faruqi & Faruqi, LLP, a prominent national securities law firm, has issued an important reminder for investors holding shares of Napco Security Technologies, Inc. Investors are being alerted about the impending lead plaintiff deadline in a federal class action lawsuit against the company, which is set for June 24, 2025. The firm is currently conducting an investigation into potential securities law violations by Napco Security Technologies.

Context of the Lawsuit

The investigation stems from serious allegations directed at Napco’s executives, who are accused of making false or misleading statements regarding the company’s financial health. According to the complaint, Napco’s leadership failed to disclose vital information related to its expected growth and performance, particularly concerning its hardware division, creating a false narrative about the company's strength to investors.

In a stunning revelation, on February 3, 2025, Napco announced its second-quarter financial results for fiscal year 2025, which indicated a notable drop in hardware sales attributed to reduced orders from two major distributors. This announcement led to a significant decline in the company’s stock price, plummeting from $36.70 per share at the close on January 31, 2024, to $26.93 per share on February 3, 2025—a staggering decrease of approximately 26.62% in just one trading day.

Legal Framework for Class Actions

In class-action lawsuits, the court designates a lead plaintiff, who represents the collective interests of the class members in the litigation. The individuals eligible to act as lead plaintiffs generally have the most significant financial stake in the lawsuit's outcome and are expected to manage the case effectively. Investors who suffered losses exceeding $75,000 during the specified class period can make a formal motion to join as lead plaintiff or can choose to remain as absentee class members without impacting their eligibility for potential recovery.

Faruqi & Faruqi is encouraging any shareholder affected by the dip in stock to reach out for information on their options moving forward. The firm emphasizes they welcome insights from whistleblowers, former employees, and others who may have information on Napco’s conduct. Interested parties can contact Faruqi & Faruqi directly or visit their official websites for more detailed information regarding the status of the case.

Next Steps for Investors

As the deadline approaches, affected investors should be proactive. Ensuring registration for participation or seeking legal counsel could be crucial for navigating the complexities of securities litigation.

For further information, investors can contact Faruqi & Faruqi’s securities litigation partner Josh Wilson at 877-247-4292 or 212-983-9330 ext. 1310. Investors are urged to stay informed about the developments of this case as the court processes unfold.

Conclusion

With a substantial deadline looming, all investors in Napco Security Technologies are recommended to engage with legal resources to protect their rights and interests. This significant class action could provide an essential avenue for recourse against the alleged misleading practices of the company’s management.