Summary: The class action lawsuit initiated by Randy Zornberg against Napco Security Technologies, Inc., Richard L. Soloway, and Kevin S. Buchel, was filed on August 29, 2023. The suit represents individuals or entities that purchased or acquired Napco's publicly traded securities between November 7, 2022, and August 18, 2023. The plaintiff contends that the defendants violated federal securities laws as per the Securities Exchange Act of 1934, resulting in economic damages. The lawsuit alleges that the defendants issued misleading statements regarding Napco's financial health and internal controls, which purportedly inflated the market price of the company's securities. The case centers on two significant weaknesses in Napco's internal controls: ineffective information technology general controls and the reserve for excess and slow-moving inventory. Despite these weaknesses, the company's management is accused of minimizing their impact in reports and failing to disclose any substantial changes to its internal control over financial reporting and any fraud. The lawsuit also scrutinizes Napco's financial results for the first three quarters, which were allegedly inaccurate due to the aforementioned weaknesses. The truth began to unravel when Napco announced on August 18, 2023, that it would restate its unaudited financial statements due to errors in the calculation of the cost of goods sold and inventory. The plaintiff asserts that the defendants' alleged misconduct and omissions led to a significant drop in the market value of Napco's common shares, resulting in substantial losses for the plaintiff and other class members. The lawsuit seeks compensation for the losses incurred by the class members due to the defendants' alleged fraudulent actions. The Rosen Law Firm, P.A. is handling the case, which is filed in the United States District Court for the Eastern District of New York.