NEW YORK, Sept. 15, 2023 (GLOBE NEWSWIRE) — The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Napco Securities Technologies, Inc. (“Napco” or the “Company”) (NASDAQ: NSSC) securities during the period from November 7, 2022 through August 18, 2023, inclusive (the “Class Period”). Investors have until October 30, 2023 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
On August 18, 2023, Napco issued a press release on Form 8-K announcing it would restate its previously-issued financial statements from September 30, 2022 to the present after identifying certain errors related to its calculation of cost of goods sold (“COGS”) and inventory for the each of the first three quarters of the 2023 fiscal year. As a result of those errors, Napco’s inventories were overstated and its cost of goods sold was understated, causing overstated gross profit, operating income, and net income for each period. On this news, the price of Napco shares declined by $17.30, or approximately 45%, from $38.41 per share to close at $21.11 on August 21, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) Napco failed to address any material weaknesses with internal controls regarding COGS and inventory; (ii) Napco downplayed the severity of material weaknesses regarding their internal controls; (iii) 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; and (iv) as a result, Napco would need to restate its previously filed unaudited financial statements for certain periods.
If you purchased or otherwise acquired Napco securities, have information, or would like to learn more about this lawsuit and how it might affect your rights, please contact Thomas W. Elrod of Kirby McInerney LLP by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website: https://www.kmllp.com.
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Kirby McInerney LLP
Thomas W. Elrod, Esq.