Deadline Reminder: Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Napco Security Technologies, Inc. (NSSC)

Law Offices of Howard G. Smith reminds investors of the upcoming October 30, 2023 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Napco Security Technologies, Inc. (“Napco” or the “Company”) (NASDAQ: NSSC) securities between November 7, 2022 and August 18, 2023, inclusive (the “Class Period”).

Investors suffering losses on their Napco investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to howardsmith@howardsmithlaw.com.

On August 18, 2023, after the market closed, Napco disclosed that its financial statements for fiscal quarters ended September 30, 2022, December 31, 2022 and March 31, 2023 should no longer be relied upon. Napco explained that management "identified certain errors related to the Company’s calculation of cost of goods sold ('COGS') and inventory for each of the first three quarters of fiscal 2023" because the Company’s costing procedures did not appropriately account for component cost fluctuations. As a result, the Company disclosed that it overstated its inventories and understated its COGS, and that it overstated gross profit, operating income and net income in each period.

On this news, Napco’s stock price fell $17.30, or 45%, to close at $21.11 per share on August 21, 2023, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Napco failed to address any material weaknesses with internal controls regarding COGS and inventory; (2) Napco downplayed the severity of material weaknesses regarding their internal controls; (3) Napco’s unaudited financial statements from September 30, 2022 to the present included “certain errors” such as overstating inventory and understanding net COGS, resulting in overstated gross profit, operating income and net income for each period; (4) as a result, Napco would need to restate its previously filed unaudited financial statements for certain periods; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

If you purchased or otherwise acquired Napco securities during the Class Period, you may move the Court no later than October 30, 2023 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to howardsmith@howardsmithlaw.com, or visit our website at www.howardsmithlaw.com.

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