Napco Security Technologies, Inc. (NASDAQ: NSSC)

This lawsuit is for anyone who acquired securities in Napco Security Technologies, Inc. (NASDAQ: NSSC) from November 7, 2022 through August 18, 2023.

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 telling investors that the Company had in place proper controls to account for expenses correctly but then by understating the Company’s costs of goods sold thereby overstating the Company’s profits.

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 sold (‘COGS’) and 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, 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 November 7, 2022 through August 18, 2023 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.