NAPCO Security Technologies, Inc. (NSSC) Failed Financial Control Case

The case has been dismissed, typically without any further action.

E.D. New York

Court

1:23-cv-06045

Case number

11/07/2022

Class period Start

08/18/2023

Class period End

10/30/2023

Lead Plaintiff motion deadline

NAPCO disclosed a weakness in its controls over financial reporting and admitted calculation errors.
$NSSC dropped by 45% and lost over $630M of market cap, seriously damaging shareholders.
Investors suspect NAPCO of failing to address material weaknesses in internal controls.

On August 18, 2023, NAPCO Security Technologies (NSSC) disclosed a material weakness in its controls over financial reporting.

The Company identified errors related to its calculation of cost of goods sold and inventory for the first three quarters of fiscal year 2023.

On this news, $NSSC dropped by 45% and lost over $630 million of its market capitalization, seriously damaging investors.

Investors have reasons to suspect NAPCO of failing to address material weaknesses in internal controls regarding COGS and inventory. When the true details entered the market, investors suffered damages.

Case Status

Dismissed

Alleged Offence

Misleading Statements,

Failure to Disclose,

Negligence,

Omissions

Suspected Party

Directors,

Management

Security Type

Stocks

Trade Direction

Long

Shock Event Date

08/19/2023

Filing date

08/29/2023

Lead Plaintiff Deadline

10/30/2023