NAPCO Investor Files Suit Over Fallen Hardware Sales, Stock Drop

NAPCO Security Technologies Inc. overhyped its hardware business’s potential until sales setbacks in the second fiscal quarter of 2025 prompted executives to walk back a key 2026 financial goal, a proposed class action said.

Share prices slid almost 27% on Feb. 3, the day the alarm system maker said reduced sales from two of its larger distributors drove a 25% decrease in net equipment sales compared to the same quarter last year, an investor told the US District Court for the Eastern District of New York. It was the stock’s steepest single-day decline since 2023, according to data compiled by ...