NAPCO SECURITY INVESTIGATION CONTINUED BY FORMER LOUISIANA ATTORNEY GENERAL: Kahn Swick & Foti, LLC Continues to Investigate the Officers and Directors of NAPCO Security Technologies, Inc. - NSSC

Core Viewpoint - Kahn Swick & Foti, LLC has initiated an investigation into NAPCO Security Technologies, Inc. following significant financial misstatements and a securities class action lawsuit against the company [1][3]. Financial Misstatements - NAPCO disclosed a material weakness in its internal controls over financial reporting for the first three quarters of fiscal 2023, leading to overstated inventories and understated cost of goods sold (COGS) [2]. - The company confirmed that net income was overstated by as much as 114.97%, income per share by 112.5%, operating income by 118.02%, and gross profit and gross margins by 35.59% [2]. Legal Proceedings - NAPCO is facing a securities class action lawsuit for failing to disclose material information, with the court recently denying the company's motion to dismiss the case [3]. - The investigation by KSF is focused on potential breaches of fiduciary duties by NAPCO's officers and/or directors, as well as violations of state or federal laws [3].