Glancy Prongay & Murray LLP (“GPM”), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired Napco Security Technologies, Inc. (“Napco” or the “Company”) (NASDAQ: NSSC) securities between November 7, 2022 and August 18, 2023, inclusive (the “Class Period”). Napco investors have until October 30, 2023 to file a lead plaintiff motion.

If you suffered a loss on your Napco investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Napco-Security-Technologies-Inc/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

On August 18, 2023, after the market closed, Napco disclosed that its financial statements for fiscal quarters ended September 30, 2022, December 31, 2022 and March 31, 2023 should no longer be relied upon. Napco explained that management "identified 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" because the Company’s costing procedures did not appropriately account for component cost fluctuations. As a result, the Company disclosed that it overstated its inventories and understated its COGS, and that it overstated gross profit, operating income and net income in each period.

On this news, Napco’s stock price fell $17.30, or 45%, to close at $21.11 per share on August 21, 2023, thereby injuring investors.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Napco failed to address any material weaknesses with internal controls regarding 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’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased or otherwise acquired Napco securities during the Class Period, you may move the Court no later than October 30, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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