1. NSSC faces a class action for misleading growth statements. 2. Financial results show significant decline in hardware sales. 3. Stock price dropped 26.62% after disappointing news. 4. Long-term EBITDA margin target has been retracted. 5. Shareholders can register for claims until June 24, 2025.
The drastic stock price fall post-announcement signals a loss of investor confidence, typically leading to long-lasting negative effects, reminiscent of similar past occurrences in tech stocks facing unexpected revenue declines.
As shareholder confidence is shaken, the class action indicates serious underlying issues that could lead to further price declines and compel investors to reassess their holdings in NSSC.
Immediate investor reaction to the news has historically resulted in quick sell-offs or price corrections, impacting NSSC in the near term.
NEW YORK, June 19, 2025 /PRNewswire/ -- 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.
Napco Security Technologies Loss Submission Form
February 5, 2024 to February 3, 2025
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.
June 24, 2025. Shareholders should not delay in registering for this class action. Register your information here: Napco Security Technologies Loss Submission Form
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.
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.
The Gross Law Firm
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Email: info@grosslawfirm.com
Phone: (646) 453-8903
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