A lawsuit was filed on behalf of investors in Napco Security Technologies, Inc. (NASDAQ:NSSC) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 09/11/2023 -- An investor, who purchased NASDAQ: NSSC shares, filed a lawsuit against Napco Security Technologies, Inc. over alleged violations of Federal Securities Laws
Investors who purchased shares of Napco Security Technologies, Inc. (NASDAQ: NSSC) have certain options and for certain investors are short and strict deadlines running. Deadline: October 30, 2023.NASDAQ: NSSC investors should contact the Shareholders Foundation at email@example.com or call +1(858) 779 - 1554.
Amityville, NY based Napco Security Technologies, Inc. develops, manufactures, and sells electronic security products in the United States and internationally.
On August 18, 2023, Napco Security Technologies, Inc. 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 Security Technologies, Inc. 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.
Shares of Napco Security Technologies, Inc. (NASDAQ: NSSC) declined from $39.01 per share on August 18, 2023, to as low as $20.02 per share on August 21, 2023.
The plaintiff claims that between November 7, 2022 and August 18, 2023, the defendants made materially false and/or misleading statements and/or failed to disclose that Napco Security Technologies, Inc failed to address any material weaknesses with internal controls regarding COGS and inventory, that Napco Security Technologies, Inc downplayed the severity of material weaknesses regarding their internal controls, that Napco Security Technologies' 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, that as a result, Napco Security Technologies, Inc would need to restate its previously filed unaudited financial statements for certain periods, and that 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
Those who purchased shares of Napco Security Technologies, Inc. (NASDAQ: NSSC) have certain options and should contact the Shareholders Foundation.
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