Notice to Napco (NSSC) Investors: June 24 Investor Deadline in Napco Securities Class Action – Hagens Berman

Core Viewpoint - Napco Security Technologies is facing a federal securities class action lawsuit due to allegations of misleading investors about its financial health and growth prospects, particularly regarding hardware sales forecasting and distribution network vulnerabilities [2][3][5]. Group 1: Allegations and Investigation - The lawsuit claims that Napco's management presented an overly optimistic view of the company's financial situation, leading to artificially inflated stock prices during the class period from February 5, 2024, to February 3, 2025 [2][5]. - Hagens Berman is actively investigating these allegations, focusing on whether Napco misled investors about its sales forecasting and distribution practices [3][5]. - The firm encourages investors who suffered losses to step forward, as this could enhance the collective effort to hold Napco accountable [4]. Group 2: Financial Performance and Impact - Napco allegedly overstated its growth and hardware division performance, suggesting it could meet ambitious fiscal 2026 targets despite undisclosed vulnerabilities in its distribution network [5]. - The company reportedly failed to disclose its heavy reliance on a few large distributors, which made it vulnerable to inventory adjustments by these distributors [5]. - Following the release of its Q2 fiscal 2025 results on February 3, 2025, which showed a significant decline in hardware sales, Napco's stock price dropped approximately 26.62% in one day, from $36.70 to $26.93 per share [5].