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SHAREHOLDER ALERT: Levi & Korsinsky, LLP Notifies Investors It Has Filed a Complaint to Recover Losses Suffered by Purchasers of Napco Security Technologies, Inc. Securities and Sets a Lead Plaintiff Deadline of June 24, 2025
NSSCNAPCO Security Technologies(NSSC) GlobeNewswire News Room·2025-04-26 00:46

Core Viewpoint - A class action lawsuit has been filed against Napco Security Technologies, Inc. due to significant discrepancies between the company's projected growth and actual financial performance, particularly in its hardware division [1][2]. Financial Performance - On February 3, 2025, Napco reported a notable decline in hardware sales for the second quarter of fiscal 2025, attributing the drop primarily to reduced sales from two major distributors [3]. - Following the disappointing sales results, the company retracted its long-term EBITDA margin target of 45%, expressing uncertainty about achieving this goal by the end of fiscal 2026 [3]. - Napco's stock price experienced a sharp decline, falling from 36.70pershareonJanuary31,2024,to36.70 per share on January 31, 2024, to 26.93 per share on February 3, 2025, marking a decrease of approximately 26.62% in just one day [3]. Legal Proceedings - The class action lawsuit, Shailesh Patel v. Napco Security Technologies, Inc., was initiated in the United States District Court for the Eastern District of New York, targeting investors who acquired Napco securities between February 5, 2024, and February 3, 2025 [1][4]. - Investors have until June 24, 2025, to request appointment as lead plaintiff in the lawsuit, although participation in any recovery does not require serving as lead plaintiff [4].