1. A class action lawsuit claims NSSC engaged in securities fraud. 2. The suit covers alleged misleading information from February 2024 to February 2025. 3. NSSC reported a 26.62% drop in stock price after poor hardware sales. 4. Long-term EBITDA margin targets were downgraded due to sales decline. 5. Investors can claim damages without upfront costs until June 2025.
The substantial decline in stock price following negative sales results indicates investor loss. Historical precedents show that lawsuits can divert attention and stabilize stock price unpredictably.
The article presents significant legal challenges for NSSC relating to financial performance, likely impacting investor sentiment and stock price.
Immediate effects are observed from the lawsuit's announcement and NSSC's financial performance. Similar cases often yield short-term volatility as investors reassess risks.
Levi & Korsinsky, LLP notifies investors in Napco Security Technologies, Inc. ("Napco" or the "Company") (NASDAQ: NSSC) of a class action securities lawsuit.
The lawsuit seeks to recover losses on behalf of Napco investors who were adversely affected by alleged securities fraud between February 5, 2024 and February 3, 2025. Follow the link below to get more information and be contacted by a member of our team:
https://zlk.com/pslra-1/napco-security-technologies-inc-lawsuit-submission-form-2?prid=150680&wire=4
NSSC investors may also contact Joseph E. Levi, Esq. via email at [email protected] or by telephone at (212) 363-7500.
According to the complaint, defendants provided investors with material information concerning Napco's overall expected growth and strength in the Company's hardware division. Defendants' statements included, among other things, confidence in Napco's ability to achieve its fiscal 2026 growth projections on back of its ability to both appropriately forecast and execute upon the alleged demand for its hardware products.
On February 3, 2025, Napco announced its financial results for the second quarter of fiscal 2025, revealing a significant reduction in hardware sales for the quarter. The Company attributed the decline "primarily … to reduced sales from 2 of the company's larger distributors." As a result of the setback in sales, defendants additionally pulled back their long-term 45% EBITDA margin target, as they "don't know" if the target can be achieved by the end of fiscal 2026. Following this news, Napco's common stock declined dramatically. From a closing market price of $36.70 per share on January 31, 2024, Napco's stock price fell to $26.93 per share on February 3, 2025, a decline of about 26.62% in the span of just a single day.
If you suffered a loss in Napco during the relevant time frame, you have until June 24, 2025 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
If you are a class member, you may be entitled to compensation without payment of any out-of-pocket costs or fees. There is no cost or obligation to participate.
Over the past 20 years, the team at Levi & Korsinsky has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. Our firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 17th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171
www.zlk.com
SOURCE Levi & Korsinsky, LLP