NAPCO Security Technologies, Inc. Securities Class Action Litigation
Securities class action litigation has been filed on behalf of investors who purchased or otherwise acquired publicly traded securities of NAPCO Security Technologies, Inc. (“NAPCO” or the “Company”) (NASDAQ: NSSC) between November 7, 2022 and August 18, 2023, inclusive (the “Class Period”).
If you purchased publicly traded NAPCO securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than October 30, 2023. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
NAPCO investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff should complete the form below, text or email email@example.com, or call Lieff Cabraser partner Sharon M. Lee at 1-800-541-7358.
Background on the NAPCO Securities Class Litigation
NAPCO develops, manufactures, and distributes security products.
The action alleges NAPCO made false and/or misleading statements and failed to disclose that: (1) the Company failed to address its flawed internal controls concerning inventory and cost of goods sold (“COGS”); (2) NAPCO understated the material weaknesses in its internal controls; (3) the Company’s unaudited financial statements from September 30, 2022 through the present contained errors such as overstating inventory and understating net COGS, resulting in overstated gross profit, operating income and net income; and (4) as a result, NAPCO needed to restate certain of its unaudited financial results.
On Friday, August 18, 2023, after market close, NAPCO announced that its unaudited financial statements for fiscal quarters ended September 30, 2022, December 31, 2022, and March 31, 2023 contained errors relating to the calculation of inventory and COGS, and that the Company planned to restate its unaudited financial statements for each of those periods, and therefore, they should no longer be relied upon. On this news, NAPCO’s stock price fell $17.30 per share, or 45.04%, from its closing price of $38.41 on August 18, 2023, to close at $21.11 on the next trading day, August 21, 2023, on elevated trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $129 billion in verdicts and settlements. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America,” and listed us as its “2020 California Plaintiff Firm of the Year.” Lieff Cabraser is committed to ensuring access to justice for all.