New York, May 12, 2025 — The Gross Law Firm has issued a notice to shareholders of Napco Security Technologies, Inc. regarding possible legal action related to stock purchases during a specific class period. Investors who bought shares of Napco from February 5, 2024, to February 3, 2025, are urged to reach out to the firm for potential lead plaintiff appointments.
The firm emphasizes that becoming a lead plaintiff is not a prerequisite for participating in any recovery efforts. Allegations indicate that Napco’s management provided misleading assurances about the company’s growth and performance, particularly in its hardware division. Reports allege that these statements created a false sense of security regarding Napco’s ability to meet fiscal 2026 growth targets.
On February 3, 2025, Napco disclosed its financial results for the second quarter of fiscal 2025, revealing a substantial drop in hardware sales. The company attributed this decline to reduced sales from two of its major distributors. Following this announcement, Napco retracted its long-term target for a 45% EBITDA margin, stating uncertainty about whether it could achieve that benchmark by the end of fiscal 2026.
This unexpected setback prompted a dramatic decline in Napco’s stock price. The stock fell from a closing price of $36.70 per share on January 31, 2024, to $26.93 per share on February 3, 2025, marking a nearly 27% decrease in just one day.
Stakeholders are reminded that the deadline to register for this class action is June 24, 2025. Shareholders who purchase shares during the outlined period will be enrolled in a monitoring system for updates throughout the case. Participation in this legal action carries no cost or obligation to the shareholders.
The Gross Law Firm is a recognized entity in the legal world for class action cases, dedicated to safeguarding investors’ rights against fraudulent business practices. The firm seeks to hold companies accountable when misleading information leads to inflated stock values, causing losses for investors.
For further inquiries, interested parties can contact The Gross Law Firm. Their office is located at 15 West 38th Street, 12th floor, New York, NY 10018. They can also be reached via email at dg@securitiesclasslaw.com or by phone at (646) 453-8903.
This article was automatically written by Open AI, and the people, facts, circumstances, and story may be inaccurate. Any article can be requested for removal, retraction, or correction by sending an email to contact@publiclawlibrary.org.