SAN FRANCISCO, June 24, 2025 (GLOBE NEWSWIRE) — Did you suffer substantial losses on your Napco Security Technologies (NASDAQ: NSSC) investments? Hagens Berman reminds investors of a critical deadline: June 24, 2025. This is your deadline for seeking appointment as lead plaintiff in a federal securities class action lawsuit against Napco.
If you purchased Napco securities between February 5, 2024, and February 3, 2025, inclusive, and experienced significant losses, click here. You may have legal recourse. Hagens Berman is prepared to help you understand your options and potentially recover your investment losses.
Class Period: Feb. 5, 2024 – Feb. 3, 2025
Lead Plaintiff Deadline: June 24, 2025
Visit: www.hbsslaw.com/investor-fraud/nssc
Contact the Firm Now: NSSC@hbsslaw.com
844-916-0895
The Allegations: Why Napco Investors May Have Been Misled
This lawsuit alleges that Napco’s management presented an overly optimistic and misleading picture of the company’s financial health and growth prospects, specifically concerning its hardware sales forecasting and distribution network. Investors who bought shares during the Class Period may have paid artificially inflated prices due to these alleged misrepresentations.
Here’s a summary of the core allegations:
- Inflated Growth & Hardware Strength: Napco allegedly touted strong growth and hardware division performance, suggesting it could accurately forecast demand and achieve ambitious fiscal 2026 targets.
- Undisclosed Distribution Vulnerabilities: The lawsuit claims Napco failed to disclose its significant reliance on a few large distributors, which made the company highly vulnerable to their inventory adjustments.
- Faulty Sales Forecasting: It’s contended that Napco lacked adequate capacity to forecast product demand and downplayed potential fluctuations, while pushing ambitious margin projections reliant on consistent sales increases.
- The Truth Revealed: On February 3, 2025, Napco’s Q2 fiscal 2025 results exposed the alleged issues. The company reported a sharp decline in hardware sales, blaming major distributors cutting inventory.
- Retracted Long-Term Targets: Following this disclosure, Napco notably pulled its long-term 45% EBITDA margin target, admitting uncertainty about achieving it by fiscal 2026.
- Significant Stock Price Drop: The market reacted swiftly. On February 3, 2025, Napco’s stock plunged approximately 26.62% in a single day, from $36.70 to $26.93 per share, erasing significant investor value.
Hagens Berman’s Active Investigation: Seeking Accountability
Hagens Berman, a prominent shareholder rights firm, is actively investigating these allegations, focusing on whether Napco misled investors about its sales forecasting and distribution practices.
“The June 24th lead plaintiff deadline is a pivotal moment for investors who suffered significant losses,” said Reed Kathrein, the Hagens Berman partner overseeing the investigation. “By stepping forward, they can not only shape the litigation but also enhance the collective effort to hold Napco accountable and potentially recover their investments.”
If you invested in Napco and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »
If you’d like more information and answers to frequently asked questions about the Napco case and our investigation, read more »
Whistleblowers: Persons with non-public information regarding Napco should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email NSSC@hbsslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
