Overview

A class action lawsuit has been filed against Napco Security Technologies, Inc. (“Napco” or the “Company”) and certain of the Company’s senior executives alleging violations of the federal securities laws. The Company’s common stock trades on the Nasdaq Global Select Market (“NASDAQ”) under the ticker symbol “NSSC.”

The Napco class action lawsuit was brought on behalf of all persons and entities who purchased or otherwise acquired Napco securities between February 5, 2024, to February 3, 2025, both dates inclusive (the “Class Period”).

Napco develops, manufactures, and sells high-tech electronic security devices and provides cellular communication services for intrusion and fire alarm systems. The Company’s diverse array of security products encompass access control systems, door-locking products, intrusion and fire alarm systems, and video surveillance products. Napco’s income stems both from these direct hardware sales and recurring monthly subscription service for its cellular devices.

The Napco class action lawsuit alleges that Defendants, throughout the Class Period, provided investors with overly positive material information concerning Napco’s overall expected growth and strength in the Company’s hardware division. Defendants’ statements expressed, among other things, confidence in Napco’s ability to achieve its fiscal 2026 growth projections on the back of the Company’s ability to both appropriately forecast and execute upon the alleged demand for its hardware products.

Defendants provided these overwhelmingly positive statements to investors while, at the same time, disseminating materially false and misleading statements and/or concealing material adverse facts concerning the true state of Napco’s ability to forecast the demand for its products or otherwise the true state of Napco’s negotiating position with distributors. Despite making lofty long-term projections and claiming one-off setbacks to hardware sales, Napco’s forecasting processes fell short of reality as sales continued to decline and, ultimately, derailed the Company’s long-term projections. Defendants’ positive statements omitted such material, adverse facts and, as a result, caused Plaintiff and other shareholders to purchase Napco’s securities at artificially inflated prices.

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If you purchased or otherwise acquired Napco securities between February 5, 2024 and February 3, 2025, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at [email protected]. 

The deadline to apply to the Court to serve as lead plaintiff in the Napco class action lawsuit is June 24, 2025.