Napco Security Technologies, Inc.

Case Overview
Status: | Status: Investigating |
Company Name: | Company Name: Napco Security Technologies, Inc. |
Court: | Court: Eastern District of New York |
Case Number: | Case Number: 2:25cv02308 |
Class Period: | Class Period: 02/05/2024 - 02/03/2025 |
Ticker: | Ticker: NSSC |
Related Attorneys: | Lead Attorneys: Thomas W. Elrod |
Related Practices: | Related Practices: Securities |
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Napco Security Technologies, Inc. (“Napco” or the “Company”) (NASDAQ:NSSC) securities during the period from February 5, 2024, through February 3, 2025 (“the Class Period”). Investors have until June 24, 2025, to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On February 3, 2025, Napco unveiled their second quarter fiscal year 2025 results below expectations, again due to setbacks in equipment revenue. Napco’s Executive Vice President of Operation, Kevin Buchel, provide the following details, in pertinent part: “Equipment sales for the quarter decreased 25% to $21.7 million as compared to 29% million last year. The decrease in net equipment sales were primarily attributable to reduced sales from 2 of the company’s larger distributors, one of which our largest customer who purchases both intrusion and locking products…” On this news, the price of Napco shares declined by $9.77 per share, from $36.70 per share on January 31, 2025, to close at $26.93 on February 3, 2025.
The complaint alleges that defendants, throughout the Class Period, failed to disclose the true state of its ability to achieve its fiscal 2026 growth projections based on its ability to both appropriately forecast and execute upon the alleged demand for its hardware products.
On February 3, 2025, Napco unveiled their second quarter fiscal year 2025 results below expectations, again due to setbacks in equipment revenue. Napco’s Executive Vice President of Operation, Kevin Buchel, provide the following details, in pertinent part: “Equipment sales for the quarter decreased 25% to $21.7 million as compared to 29% million last year. The decrease in net equipment sales were primarily attributable to reduced sales from 2 of the company’s larger distributors, one of which our largest customer who purchases both intrusion and locking products…” On this news, the price of Napco shares declined by $9.77 per share, from $36.70 per share on January 31, 2025, to close at $26.93 on February 3, 2025.
The complaint alleges that defendants, throughout the Class Period, failed to disclose the true state of its ability to achieve its fiscal 2026 growth projections based on its ability to both appropriately forecast and execute upon the alleged demand for its hardware products.