NAPCO Security Technologies, Inc. (NSSC) Shareholder Notice: Grabar Law Office Is Investigating Claims on Your Behalf as Class Action Survives Motion to Dismiss

Philadelphia, Pennsylvania--(Newsfile Corp. - April 25, 2025) - A securities fraud class action complaint against NAPCO Securities Technologies, Inc. (NASDAQ: NSSC) has survived a motion to dismiss the complaint. Shareholders who have held NAPCO shares since prior to November 7, 2022, can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to them whatsoever. Click here to join or learn more: https://grabarlaw.com/the-latest/Napco-shareholder-investigation/, contact Joshua H. Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.

Why? Key allegations in a recently filed securities fraud class action complaint have survived a motion to dismiss. That complaint alleges that NAPCO Security Technologies, Inc. (NASDAQ: NSSC), through certain of its officers and directors, made materially false and/or misleading statements and/or failed to disclose that: (1) NAPCO failed to address any material weaknesses with internal controls regarding cost of goods sold ("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' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

On April 11, 2025, the federal court determined that key allegations would survive Defendants' motion to dismiss the complaint.

The Court determined that "Plaintiffs have adequately stated Exchange Act claims by pleading scienter [knowledge of wrongdoing] through defendants' unusual stock sales and by plausibly alleging loss causation between the corrective announcement and stock price drop. Plaintiffs have also stated Securities Act claims against NAPCO and the underwriter defendants."

"Taking the well-pleaded facts as true, there is no question that plaintiffs have adequately pled scienter. First, the stock sales were highly unusual in timing and amount. As to amount, the total proceeds of over $108 million from stock sales by the officer defendants weigh in favor of a motive. . . . And the officer defendants sold hefty percentages of their holdings - 48.5% for Soloway and 45.5% for Buchel."

What You Can Do Now: If you have held NAPCO shares since before November 7, 2022 and would like to learn more about this matter, please visit https://grabarlaw.com/the-latest/Napco-shareholder-investigation/, contact Joshua H. Grabar at jgrabar@grabarlaw.com, or call 267-507-6085. You can seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever. $NSSC #NAPCO

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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/249811