PHILADELPHIA, Sept. 08, 2023 (GLOBE NEWSWIRE) -- Napco Securities Technologies Inc. (NASDAQ: NSSC) – a manufacturer of security products, such as electronic locks and alarms – revealed that it had not maintained appropriate financial reporting controls. In a statement released after the close of the market, the company said it had “identified certain errors related to the Company’s calculation of the cost of goods sold and inventory for each of the first three quarters of fiscal 2023.” Napco also revealed that it had overstated gross profit, operating income, and net income in each of these periods, meaning that its financial statements for these periods were false and will need to be restated. Multiple financial analysts downgraded Napco shares and its share price fell by more than $21 per share, or over 45%, wiping out in excess of $635 million in market capitalization. With these disclosures, Barrack Rodos & Bacine *BR&B) immediately began to investigate the situation.
On August 30, 2023, a class action lawsuit was filed on behalf of purchasers of Napco shares between November 7, 2022 and August 18, 2023 (the “class period”). The complaint asserts violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The plaintiff cites the above-mentioned financial restatements and the weaknesses in internal controls giving rise to them as support for claims that the company made materially false and misleading statements during the class period.
If you have sustained losses in your investment in shares of Napco, we encourage you to discuss your rights by contacting Mark R. Stein or Linda Border at Barrack, Rodos & Bacine, at the toll-free number 877-386-3304, or via email at investoralert@barrack.com. Investors who purchased shares of Napco stock between November 7, 2022, and August 18, 2023, and suffered a loss may be eligible to seek a lead plaintiff position, a court-appointed role. The deadline for persons seeking to serve as a lead plaintiff for this case is October 30, 2023.
For information about this matter and about Barrack, Rodos & Bacine, please visit the firm's website.
Barrack Rodos & Bacine is a nationally recognized shareholder and consumer rights law firm with offices in Pennsylvania, New York, and California. It has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in U.S. history of securities litigation. The firm’s largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.
