Napco Securities Technologies Faces Lawsuit Over Financial Reporting Errors

Napco Securities Technologies Inc., a leading manufacturer of security products, is currently facing a class-action lawsuit following the revelation of financial reporting errors. The company recently announced that it had not maintained appropriate financial reporting controls, leading to the identification of certain errors in the calculation of the cost of goods sold and inventory for the first three quarters of fiscal 2023.

As a result of these errors, Napco overstated gross profit, operating income, and net income for each of the affected periods. The company’s financial statements for these periods were deemed false and will require restatement. This disclosure caused a significant decline in Napco’s share price, resulting in a loss of over $635 million in market capitalization.

In response to these developments, Barrack Rodos & Bacine (BR&B), a renowned shareholder and consumer rights law firm, initiated an investigation into the matter. 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, citing violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

The lawsuit alleges that Napco made materially false and misleading statements during the class period, pointing to the financial restatements and weaknesses in internal controls as supporting evidence. Investors who suffered losses in their Napco investments during the specified period may be eligible to seek a lead plaintiff position in the case.

Barrack Rodos & Bacine, with its extensive experience in prosecuting securities law class actions, including cases involving accounting fraud, is well-positioned to represent affected investors. The firm has achieved substantial recoveries in previous securities litigation cases, including notable victories for WorldCom, Cendant, McKesson, and AIG investors.

If you have incurred losses in your investment in Napco shares between November 7, 2022, and August 18, 2023, it is advisable to discuss your rights with Barrack Rodos & Bacine. Interested parties can contact Mark R. Stein or Linda Border at the toll-free number 877-386-3304 or via email at investoralert@barrack.com. The deadline for individuals seeking to serve as a lead plaintiff in this case is October 30, 2023.

For more information about the ongoing investigation and Barrack Rodos & Bacine, please visit the firm’s website. With offices in Pennsylvania, New York, and California, the firm is dedicated to protecting shareholder and consumer rights, and has a proven track record of securing significant recoveries in securities litigation cases.