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Attention Napco Security Technologies Investors

Faruqi & Faruqi, LLP, recognized as a premier national securities law firm, is closely monitoring a developing situation involving Napco Security Technologies, Inc. With a critical deadline approaching, the firm is actively encouraging investors who have experienced losses related to Napco to come forward.

Class Action Lawsuit Overview

A class action lawsuit has been initiated against Napco, with a specific focus on the period between February 5, 2024, and February 3, 2025. Investors who believe they have sustained financial losses during this timeframe are urged to consider their options, particularly as June 24, 2025, marks the cut-off date for appointing a lead plaintiff in this case. This class action aims to hold Napco accountable for potential violations of federal securities laws, specifically relating to misleading statements that have confused shareholders about the company’s financial health and market performance.

The lawsuit alleges that Napco and its executives provided investors with inaccurate information regarding the company's anticipated growth and the performance of its hardware division. Confident assertions were made regarding Napco’s capacity to achieve robust growth projections for its fiscal year 2026. However, on February 3, 2025, the company announced its second-quarter financial results, which revealed a troubling decline in hardware sales, primarily stemming from reduced orders from major distributors. Consequently, Napco not only retracted its ambitious EBITDA margin goals but also cited uncertainty about achieving these targets in the foreseeable future.

Significant Impact on Stock Performance

In the wake of the disappointing financial disclosures, Napco's shares plunged dramatically. The company's stock price plummeted from a closing market value of $36.70 on January 31, 2024, down to $26.93, representing a staggering loss of approximately 26.62% in a single day. This abrupt depreciation in stock value has left many investors seeking answers and avenues for recovery.

Role of Lead Plaintiff

In class action lawsuits, the lead plaintiff is typically an investor who has sustained the most significant financial loss and is willing to take on the responsibility of directing the litigation. Current class members hold the option to either nominate themselves as lead plaintiff or remain part of the class without taking a leading role. It’s important to note that participating as a lead plaintiff is independent of one’s ability to benefit from any potential settlements or judgments resulting from the lawsuit.

The law firm Faruqi & Faruqi emphasizes that any individuals with pertinent information regarding Napco’s business practices—including former employees and whistleblowers—should reach out. The firm is dedicated to investigating all angles to ensure justice for those affected.

Get Involved

For further details about the pending class action and how to get involved, investors can visit Faruqi Law's dedicated page or contact partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Extension 1310). It is crucial for affected investors to act quickly, especially with the impending deadline approaching.

Faruqi & Faruqi, LLP has built a solid reputation since its founding in 1995, recovering significant amounts for investors across various sectors. As they continue to champion the rights of investors, the firm remains committed to transparency and open communication regarding ongoing legal matters.