#USA #New York #Class Action #NAPCO Security #NSSC

Levi & Korsinsky Files Class Action for Napco Security Technologies Investors

In a significant legal move, Levi & Korsinsky, LLP has announced a class action lawsuit on behalf of shareholders of Napco Security Technologies, Inc. (NASDAQ: NSSC). The lawsuit seeks to address the alleged securities fraud that has impacted many investors between February 5, 2024, and February 3, 2025.

The Background of the Case

The foundation of this class action stems from the company's steady decline in stock value, which was exacerbated by the revelation of disappointing sales in its hardware division. As outlined in the lawsuit, the defendants had assured investors of Napco's strong potential for growth and the expected performance of its hardware products. Their optimistic forecasts included an assertion that Napco would achieve its fiscal 2026 growth projections based on anticipated demand for its product line.

However, this optimistic outlook appeared to be at odds with the reality disclosed on February 3, 2025, during the announcement of the company's financial results for the second quarter of fiscal 2025. Napco revealed that hardware sales had taken a considerable hit, attributed primarily to decreased orders from two significant distributors. More alarmingly, the company stated that it was pulling back its ambitious long-term EBITDA margin target of 45%, expressing uncertainty about meeting this goal by the end of fiscal 2026. This stark contrast between previous assertions and the revealed financial struggles resulted in a dramatic stock price drop of around 26.62%, from $36.70 per share to $26.93 per share within a single day.

The Legal Implications

As a shareholder affected by these events, you may be eligible to join the class action to recover your losses. Potential plaintiffs have until June 24, 2025, to request that the Court appoint them as lead plaintiff, although participation in any recovery does not require an individual to take on this role. Importantly, there are no costs involved for class members, and compensation may be secured without upfront fees.

Levi & Korsinsky has built a solid reputation over the past 20 years, successfully advocating for the rights of investors and delivering hundreds of millions of dollars in settlements for those aggrieved by corporate misconduct. Their track record extends to representing investors in numerous high-stakes cases, marking them as a leading firm in securities litigation.

How to Get Involved

If you believe you have suffered losses from your investments in Napco during the specified timeframe, it's essential to act swiftly. You can reach out to the team at Levi & Korsinsky for more information or assistance. Shareholders can contact Joseph E. Levi, Esq. via email or phone – details of which can be found in the announcement.

The ongoing case raises important questions about corporate responsibility and transparency in communications with investors. As the legal proceedings unfold, shareholders are hopeful for appropriate redress and accountability.

For Consultation and More Information

For those looking to understand their rights or to get more information on this class action, you may visit the Levi & Korsinsky website or directly reach out to their office based in New York, NY. The firm stresses their commitment to representing shareholders and ensuring that those impacted can participate fully in discussions to seek justice and recover losses suffered through no fault of their own.