NSSC Investors Sue After Margin Promises Fizzle

Napco Security Technologies investors are sounding the alarm after the company's claims about big margins turned about to be a ton of smoke. When investors learned the truth about Napco's empty promises, the Company's stock fizzled out. Now investors are fighting back with lawsuit to hold the company accountable.

Throughout 2024, Napco executives painted a rosy picture of rising demand and growth, telling investors they were "well on our way" to hitting a 45% margin by 2026. But beneath the surface, Napco's hardware division was losing traction, and its margin forecasts were built more on wishful thinking than reliable data.

By early 2026, the truth came out: Napco's hardware sales had dropped sharply: down 25% in Q-2, and margins shrank as key distributors slashed orders. The company admitted it could no longer confirm whether its fiscal 2026 goals were achievable. Once investors heard this news, they raced for the exits and Napco's share price tanked. Now, more investors are joining the lawsuit.