Napco Security Technologies, Inc. (NASDAQ: NSSC)

Join This Class Action

NEW YORK, NY –  September 6, 2023 – Wolf Haldenstein Adler Freeman & Herz LLP  (“Wolf  Haldenstein”) announces that a federal securities class action lawsuit has been filed in the United States District Court for Eastern District of New York on behalf of persons and entities that purchased or otherwise acquired Napco Security Technologies, Inc. (“Napco” or the “Company”) (NASDAQ: NSSC) securities between November 7, 2022 and August 18, 2023, inclusive (the “Class Period”). 

All investors who purchased shares and incurred losses are  advised  to contact the firm immediately at classmember@whafh.com or (800) 575-0735 or (212) 545-4774. 

If you have incurred losses, you may, no later than October 30, 2023, request that the Court appoint you lead plaintiff of the proposed class. Please contact Wolf Haldenstein to learn more about your rights.

The filed complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects.

Specifically, Defendants failed to disclose to investors that:

  • Napco failed to address any material weaknesses with internal controls regarding cost of goods sold (“COGS”) and inventory;
  • Napco downplayed the severity of material weaknesses regarding their internal controls;
  • Napco’s unaudited financial statements from September 30, 2022 to the present included
    “certain errors” such as overstating inventory and understanding net COGS, resulting in overstated gross profit, operating income and net income for each period;
  • as a result, Napco would need to restate its previously filed unaudited financial statements for certain periods; and
  • as a result, Defendants’ positive statements about the Company’s business, operations, and
    prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

On August 18, 2023, after the market closed, Napco disclosed that its financial statements for fiscal quarters ended September 30, 2022, December 31, 2022 and March 31, 2023 should no longer be relied upon. Napco explained that management “identified certain errors related to the Company’s calculation of cost of goods inventory for each of the first three quarters of fiscal 2023” because the Company’s costing procedures did not appropriately account for component cost fluctuations. As a result, the Company disclosed that it overstated its inventories and understated its COGS, and that it overstated gross profit, operating income and net income in each period.

On this news, Napco’s stock price fell $17.30, or 45%, to close at $21.11 per share on August 21, 2023.

Wolf Haldenstein has extensive experience in the prosecution of securities class actions and derivative litigation in state and federal trial and appellate courts across the country.  The firm has attorneys in various practice areas; and offices in New York, Chicago and San Diego.  The reputation and expertise of this firm in shareholder and other class litigation has been repeatedly recognized by the courts, which have appointed it to major positions in complex securities multi-district and consolidated litigation.

If you wish to discuss this action or have any questions regarding your rights and interests in this case, please immediately contact Wolf Haldenstein by telephone at (800) 575-0735 or via e-mail at classmember@whafh.com.

Contact: 

Wolf Haldenstein Adler Freeman & Herz LLP

Patrick Donovan, Esq.

Gregory Stone, Director of Case and Financial Analysis

Email: gstone@whafh.com, donovan@whafh.com or classmember@whafh.com

Tel: (800) 575-0735 or (212) 545-4774

 

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

 

 

 


Certification and Authorization Pursuant to Federal Securities Laws

  • The individual or entity listed below requests Wolf Haldenstein Adler Freeman & Herz LLP to file an action or motion for appointment as lead plaintiff and lead counsel under the federal securities laws to recover damages and to seek other relief against Napco Security Technologies, Inc. (NASDAQ: NSSC). Wolf Haldenstein Adler Freeman & Herz LLP will not do so until you complete a retainer agreement authorizing us to prosecute the action on a contingent fee basis.

  • I, individually or on behalf of the entity I represent ("I"), hereby certify as follows:

    1. I have reviewed the complaint and authorize the filing of a lead plaintiff motion or action on my behalf.
    2. I did not acquire the security that is the subject of this action at the direction of the Firm or in order to participate in this private action or any other litigation under the federal securities laws.
    3. I am willing to serve as a representative party on behalf of a class, including providing testimony at deposition and trial, if necessary.
    4. I represent and warrant that I am fully authorized to enter into and execute this certification.
    5. I will not accept any payment for serving as a representative party on behalf of the class beyond my pro rata share of any recovery, except such reasonable costs and expenses (including lost wages) directly relating to the representation of the class as ordered or approved by the court.
    6. I have made no transaction(s) during the Class Period in the debt or equity securities that are the subject of this action except those set forth below:
  • Type of SecurityBuy Date (mm/dd/yy)# of SharesPrice per Share 
  • Type of SecuritySell Date (mm/dd/yy)# of SharesPrice per Share 
  • Signed pursuant to California Civil Code Section 1633.1, et seq. - and the Uniform Electronic Transactions Act as adopted by the various states and territories of the United States.

Date of signing: 09/27/2023