Napco Security Technologies (NSSC) Shares Plummet After Disappointing Earnings, Distributor Issues– Hagens Berman

(MENAFN- GlobeNewsWire - Nasdaq) SAN FRANCISCO, Feb. 10, 2025 (GLOBE NEWSWIRE) -- Napco Security Technologies, Inc. (NASDAQ: NSSC) saw its shares tumble after the company reported a sharp decline in second-quarter 2025 earnings, revealing problems with its distribution network. The news reignited concerns about the company's sales practices, previously raised by a research report last September.

Hagens Berman urges Napco investors who suffered substantial losses to submit your losses now . The firm also encourages persons with knowledge who may be able to assist in the investigation to contact its attorneys.

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Napco Security Technologies, Inc. (NSSC) Investigation:

On February 3, 2025, Napco reported a 25% drop in equipment sales compared to the same quarter the previous year. The company attributed the decline to "reduced sales to two of our larger distributors," with one distributor citing efforts to reduce inventory. This disclosure sent Napco shares spiraling downward, collapsing $9.77, or 26%, in a single day. The company also reported a 19% decrease in operating income and a 17% decrease in net income for the quarter.

This recent downturn follows a critical report issued by Fuzzy Panda Research on September 5, 2024. The report, titled“Napco Security Technologies (NSSC) – Former Employees Allege Accounting Fraud + Lapping One-Time Sales Boosts,” questioned Napco's sales practices. Fuzzy Panda alleged that Napco masked slowing equipment sales by adding ADI Global as a distributor, creating a one-time sales boost through fiscal year 2024. Following the report's release, Napco shares fell $8.89, a 20% drop.

These events have prompted prominent shareholder rights firm Hagens Berman to commence an investigation into possible violations of the securities laws.

“We're investigating whether Napco may have improperly channel-stuffed certain of its distributors,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in Napco and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now ))

If you'd like more information and answers to frequently asked questions about the Napco investigation, read more )

Whistleblowers: Persons with non-public information regarding Napco should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ... .

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com . Follow the firm for updates and news at @ClassActionLaw .

Contact:
Reed Kathrein, 844-916-0895

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