Investigation Launched by Faruqi & Faruqi on Napco Security Technologies Investors' Claims

Urgent Investigation by Faruqi & Faruqi, LLP into Napco Security Technologies

Faruqi & Faruqi, LLP, a recognized leader in national securities law, has recently initiated an investigation targeting potential claims against Napco Security Technologies, Inc. This investigation could have significant implications for investors who have engaged in transactions involving Napco's securities between February 5, 2024, and February 3, 2025. Those affected are urged to take immediate action, given the looming deadline of June 24, 2025, to assume the role of lead plaintiff in a federal securities class action against the Company.

Details of the Investigation

This inquiry stems from allegations that Napco and its executives may have violated federal securities regulations by making false or misleading statements and neglecting to disclose critical information regarding its growth expectations and the strength of its hardware division. According to claims, the defendants misled investors about their projected growth metrics, projecting confidence in reaching fiscal year 2026 growth targets largely based on demand forecasts for its hardware products.

In announcements on February 3, 2025, Napco reported a substantial decline in hardware sales for the second quarter of fiscal 2025, attributing this downturn to decreased sales from its larger distributors. Consequently, the Company also retreated from previously stated long-term targets, including a 45% EBITDA margin, expressing uncertainty about achieving these goals by fiscal year's end.

The ramifications of these revelations were felt swiftly in the market, with Napco's stock tumbling from a closing price of $36.70 on January 31, 2024, to $26.93 by February 3, 2025—an alarming drop of approximately 26.62% in a single day. This underscores the potential consequences for investors who acted on the information provided by the Company.

Action Steps for Investors

Faruqi & Faruqi encourages investors who endured losses with Napco stocks to reach out directly to partner Josh Wilson for guidance on their legal rights. Investors can contact him at 877-247-4292 or 212-983-9330 (Ext. 1310). Engaging in this process is crucial as any member with financial stakes in Napco may seek to lead the class action, but they also have the option to remain as absent members if desired.

Moreover, the firm invites anyone with insights or information pertinent to Napco's conduct, including whistleblowers, former employees, and concerned shareholders, to come forward. This investigation aims not only to address the grievances of affected investors but also to expose the potential wrongdoing that has led to investor losses.

For further information on the ongoing class action regarding Napco Security Technologies, interested parties are encouraged to explore www.faruqilaw.com/NSSC or to make direct calls to Faruqi & Faruqi's office for personalized legal consultation.

As this situation develops, stakeholders are encouraged to stay informed and proactive. Faruqi & Faruqi, LLP has been pivotal in recovering substantial amounts for investors since its inception in 1995, and the firm remains committed to fighting for justice on behalf of its clients—a mission more paramount now than ever.

This alert serves as a reminder of the importance of vigilance and informed decision-making in the uncertain landscape of securities investments.

Follow Us for Updates: To keep abreast of developments, follow Faruqi & Faruqi on platforms like LinkedIn, X, or Facebook. Remember, the timeframe for legal action is finite; thus, swift action is essential for those affected by these allegations.

Disclaimer: This article is for informational purposes only and should not be construed as legal advice. Attorney advertising principles apply, and prior outcomes do not guarantee similar results in future matters.