NAPCO Security Technologies(NSSC) Prnewswire·2025-06-06 14:04Core Viewpoint - Faruqi & Faruqi, LLP is investigating potential claims against Napco Security Technologies, Inc. due to allegations of false and misleading statements regarding the company's growth and hardware division performance [2][4]. Group 1: Legal Investigation - The law firm is encouraging investors who suffered losses in Napco between February 5, 2024, and February 3, 2025, to discuss their legal rights [1]. - There is a deadline of June 24, 2025, for investors to seek the role of lead plaintiff in a federal securities class action against Napco [2]. Group 2: Financial Performance - Napco announced a significant reduction in hardware sales for the second quarter of fiscal 2025, attributing the decline primarily to reduced sales from two larger distributors [5]. - Following the announcement, Napco's stock price fell from 26.93 per share on February 3, 2025, marking a decline of approximately 26.62% in one day [6]. Group 3: Company Statements - The complaint alleges that Napco and its executives made false statements regarding the company's expected growth and the strength of its hardware division, including confidence in achieving fiscal 2026 growth projections [4]. - The company has also pulled back its long-term 45% EBITDA margin target, indicating uncertainty about achieving this target by the end of fiscal 2026 [5].