Core Viewpoint - A class action lawsuit has been filed against Napco Security Technologies, Inc. for allegedly making false and misleading statements regarding its financial performance and growth projections, leading to investor losses during the specified class period [1][4]. Group 1: Lawsuit Details - The lawsuit pertains to violations of the Securities Exchange Act of 1934, specifically §§10(b) and 20(a), and Rule 10b-5 [1]. - Investors who purchased Napco's securities between February 5, 2024, and February 3, 2025, are encouraged to participate in the lawsuit before the deadline of June 24, 2025 [2]. Group 2: Company Performance - Napco expressed confidence in its growth based on customer demand for hardware products, but subsequently reported a decline in sales for these products during the second quarter of 2025 [4]. - The company attributed the sales shortfall to reduced sales from two of its larger distributors and retracted its long-term EBITDA margin target of 45%, indicating uncertainty about its achievability [4]. - The misleading public statements made by the company throughout the class period resulted in significant damages to investors once the truth was revealed [4].

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 $36.70 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].