NSSC LAWSUIT ALERT: The Gross Law Firm Notifies Napco Security Technologies, Inc. Investors of a Class Action Lawsuit and Upcoming Deadline
1. Class action announced for NSSC investors regarding alleged misleading statements.
2. NSSC reported significant decline in hardware sales affecting stock price dramatically.
3. Company pulled back long-term EBITDA margin target due to sales uncertainty.
4. Shareholders encouraged to register for potential recovery in class action.
5. Stock price fell from $36.70 to $26.93 in one day, a 26.62% drop.
The significant drop in sales and adjustments to projections indicate a loss of investor confidence. Historically, similar declines have led to long-term damage in stock performance.
How important is it?
The lawsuit highlights significant operational issues that could impact stock recovery. Investors are likely to react strongly to these developments.
Why Short Term?
Immediate investor sentiment is likely to remain negative, especially during litigation. However, recovery depends on future performance and legal outcomes.
The Gross Law Firm issues the following notice to shareholders of Napco Security Technologies, Inc. (NASDAQ: NSSC).
Shareholders who purchased shares of NSSC during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.
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 the 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.
Once you register as a shareholder who purchased shares of NSSC during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is June 24, 2025. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM?
The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: info@grosslawfirm.com
Phone: (646) 453-8903
