Investor litigation firm Kaskela Law announces that it is investigating Napco Security Technologies, Inc. (Nasdaq: NSSC) (“Napco”) on behalf of the company’s long-term investors.
Click here for additional information: https://kaskelalaw.com/case/napco-nssc/
PHILADELPHIA, July 23, 2026 (GLOBE NEWSWIRE) — Recently a securities fraud complaint was filed against Napco on behalf of certain investors who purchased shares of the company’s stock between February 5, 2024 and February 3, 2025 (the “Wrongdoing Period”). According to the complaint, during the Wrongdoing Period, Napco and certain of its senior executive officers (i) made a series of materially false and misleading statements to investors concerning Napco’s business, operations and prospects, and (ii) failed to disclose that the company’s largest distributors “began aggressively reducing and then completely stopped purchasing Napco’s products (a process known as “destocking”) in favor of purchasing more modern competitor products.”
As detailed in the complaint, on September 5, 2024, short seller firm Fuzzy Panda Research released a lengthy report which “began to reveal a materialization of the risk of Napco’s failure to innovate its products, reporting that Napco’s competitors have caught up and now offer better features in their products.” On this news, shares of Napco’s stock fell $8.89 per share, or 20.5% in value, to close at $34.50 per share on September 5, 2024, on unusually heavy trading volume.
Subsequently, on February 3, 2025, Napco announced its quarterly financial and operations results for the second quarter of fiscal year 2025. Therein, the company revealed that equipment sales had plummeted 25% year-over-year due to intensified destocking by Napco’s largest distributors, and that this was not a temporary issue, as defendants had previously represented to investors. On this additional news, shares of Napco’s stock fell an additional $9.77 per share, or over 26% in value, to close at $26.93 per share on February 3, 2025, again on unusually heavy trading volume.
The investigation seeks to determine whether the members of Napco’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Napco shareholders who purchased or acquired their NSSC shares prior to September 2, 2024 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) for additional information about this investigation and their legal rights and options at (484) 229 – 0750, by email at abell@kaskelalaw.com, or online at:
https://kaskelalaw.com/case/napco-nssc/
ABOUT KASKELA LAW:
Kaskela Law exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis (i.e., the firm’s clients are never responsible for any out-of-pocket costs for legal representation). Since 2020, the firm has helped to recover over $500 million for investors. For additional information about Kaskela Law, including the firm’s recent notable recoveries for investors, please visit www.kaskelalaw.com.
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
(skaskela@kaskelalaw.com)
Adrienne Bell, Esq.
(abell@kaskelalaw.com)
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(484) 229 – 0750
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