NAPCO Security Lawsuit: Act Now to Recover Losses and Protect Investments

Investors who purchased shares of NAPCO Security Technologies (NASDAQ: NSSC) between February 5, 2024, and February 3, 2025, now face a critical deadline to recover losses tied to a securities fraud lawsuit. With just days remaining to file as a lead plaintiff, the case underscores the importance of timely legal action to mitigate risks and secure potential recoveries.

The Case: Misleading Claims and a Sudden Stock Collapse

The lawsuit, filed against NAPCO and its executives, alleges that the company misled investors about its ability to achieve ambitious growth targets. Specifically, NAPCO allegedly overstated its capacity to forecast demand for its hardware division, while downplaying risks such as seasonal sales volatility and macroeconomic pressures. These misstatements, the complaint argues, artificially inflated the stock price during the class period.

The truth came to light on February 3, 2025, when NAPCO reported a sharp decline in hardware sales, citing reduced purchases from two major distributors. This revelation caused the stock to plummet by 26.62%, dropping from $36.70 to $26.93 per share. The company also abandoned its 45% EBITDA margin target for fiscal 2026, admitting it was unachievable.

The Deadline: Act Before June 24, 2025

Investors holding NSSC shares during the class period have until June 24, 2025, to apply to become lead plaintiffs. This role allows them to guide the lawsuit's direction and potentially secure greater recovery for the class. While participation in the class action does not require lead plaintiff status, the deadline is non-negotiable.

Why Timeliness Matters

• Contingency Fees: Most law firms involved, including Rosen Law Firm and The Gross Law Firm, operate on a contingency basis, meaning investors pay nothing upfront. Recovery depends on acting before the deadline.
• Risk Mitigation: Failing to join the class action could leave investors without recourse for losses caused by NAPCO's alleged fraud.
• Class Certification: No class has yet been certified, so investors must actively enroll to ensure their claims are considered.

Choosing the Right Legal Counsel

The lawsuit has drawn attention from prominent firms, each emphasizing their expertise:
- Rosen Law Firm: Highlights its $438 million+ recoveries for investors and a track record in high-profile cases, including the largest securities settlement against a Chinese firm.
- The Gross Law Firm: Offers portfolio monitoring tools to track case updates and stresses investor protection.
- Others: Levi & Korsinsky and Pomerantz also urge shareholders to act quickly.

Investors are urged to vet firms carefully, ensuring they have direct litigation roles rather than acting as referral agents.

Investment Advice: Protect Your Position

1. Review Holdings: If you owned NSSC shares between February 2024 and February 2025, calculate losses and submit a claim.
2. Act Quickly: The June 24 deadline is final; delays could forfeit recovery opportunities.
3. Stay Informed: Use law firm portals or third-party monitors to track case developments.

Final Thoughts: A Cautionary Tale

NAPCO's case serves as a reminder of the risks inherent in investing in companies with aggressive growth narratives. Investors must remain vigilant about corporate transparency and act swiftly when misstatements are exposed. For those affected by this lawsuit, the path to recovery is clear—but time is running out.

Act before June 24, 2025, to secure your rights.

This article is for informational purposes only and not a substitute for professional legal or financial advice.