PHILADELPHIA, Aug. 24, 2023 (GLOBE NEWSWIRE) -- Barrack, Rodos & Bacine (BR&B) is investigating Napco Security Technologies, Inc. (“Napco”) (NASDAQ: NSSC) for potential violations of federal securities laws, and urges investors to contact the firm.
BR&B’s investigation concerns Napco’s revelations on August 18, 2023, that it had not maintained appropriate financial reporting controls. In a statement released after the close of the market the company disclosed that it had “identified certain errors related to the Company’s calculation of the cost of goods sold (‘COGS’) and inventory for each of the first three quarters of fiscal 2023.” Napco also revealed that it had overstated gross profit, operating income, and net income in each of these periods. The financial statements for these periods could therefore not be relied upon and would need to be restated.
Multiple financial analysts downgraded Napco shares after learning about these developments.
On these disclosures, Napco’s share price fell by more than $21 per share, or over 45%, wiping out in excess of $635 million in market capitalization.
Napco is a manufacturer and distributor of security products, such as electronic locks, alarms, and building access systems. It is based in Amityville, New York.
If you have sustained losses in your investment in shares of Napco, we encourage you to discuss your rights by contacting Mark R. Stein or Linda Border at Barrack, Rodos & Bacine, at the toll-free number 877-386-3304, or via email at investoralert@barrack.com. For more information about Barrack, Rodos & Bacine, please visit the firm’s website.
Barrack Rodos & Bacine is a nationally recognized shareholder and consumer rights law firm with offices in Pennsylvania, New York, and California. It has more than four decades of experience prosecuting securities law class actions, including cases involving accounting fraud and insider trading, and has achieved some of the largest recoveries in U.S. history of securities litigation. The firm's largest recoveries on behalf of investors include $6.19 billion for WorldCom investors, $3.32 billion for Cendant investors, $1.05 billion for McKesson investors, and $970.5 million for AIG investors.
