Kuznicki Law PLLC notifies investors that a class action has commenced in the United States District Court for the Eastern District of New York on behalf of shareholders of NAPCO Security Technologies, Inc. who purchased shares between November 7, 2022 and August 18, 2023.
NAPCO and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On August 18, 2023, post-market, the Company disclosed that “the Company’s previously issued unaudited interim financial statements for the fiscal quarters ended September 30, 2022, December 31, 2022 and March 31, 2023…should no longer be relied upon” and that “a material weakness existed in the Company’s internal controls over financial reporting for each of the first three quarters of fiscal 2023, rendering the Company’s disclosure controls and procedures ineffective at the end of each such quarter” due to “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…[a]s a result, inventories were overstated and COGS was understated, resulting in overstated gross profit, operating income and net income for each period.”
On this news, shares of NAPCO fell $17.30, or 45.04%, to close at $21.11 on August 21, 2023, the next trading day.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the respective securities during the class periods. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action. Appointment as Lead Plaintiff is not required to partake in any recovery.
Shareholders have until October 30, 2023 to request that the court appoint them lead plaintiff.