Napco Security Technologies, Inc. (NASDAQ: NSSC)

This lawsuit is for anyone who acquired securities in Napco Security Technologies, Inc. (NASDAQ: NSSC) from February 5, 2024 through February 3, 2025.

The lawsuit alleges that the Company and certain of its executives violated federal law. Specifically, the lawsuit alleges that, throughout the time period mentioned above, the Company misled investors regarding its financial condition. More specifically, the lawsuit alleges that the Company misled investors by issuing positive guidance regarding the Company’s hardware sales and future margin growth despite knowing that the Company’s sales were declining and also that the Company had weak ability to forecast demand.

On February 3, 2025, Napco released its second quarter fiscal 2025 financial results, revealing a reduction in hardware sales due “primarily … to reduced sales from 2 of the company’s larger distributors.” The Company pulled back their long-term 45% EBITDA margin target, stating that it “[doesn’t] know” if the target can be reached by the end of fiscal 2026. On this news, the price of the Company’s stock dropped precipitously on unusually heavy trading volume.

The Law Offices of Howard G. Smith seeks to recover damages on behalf of class members. If you acquired securities in Napco Security Technologies, Inc. (NASDAQ: NSSC) from February 5, 2024 through February 3, 2025 you may join the lawsuit by submitting your information online, or you may call the Law Offices of Howard G. Smith and speak to Mr. Smith directly to learn how he can protect your rights.