Napco $20 Million Securities Class Action Settlement

Investors who purchased or otherwise acquired Napco Security Technologies Inc. common stock between Nov. 7, 2022, and Aug. 18, 2023, may be eligible to claim a cash payment from a class action settlement.

Napco Security Technologies Inc. agreed to pay $20 million to settle a securities class action lawsuit alleging the company, Richard L. Soloway and Kevin S. Buchel made false statements and omitted material facts that artificially inflated Napco's stock price.

Who can file a claim?

The settlement includes all persons and entities who purchased or otherwise acquired Napco Security Technologies common stock between Nov. 7, 2022, and Aug. 18, 2023, inclusive, and suffered damages as a result.

Additional details

• Both individuals and entities can be class members.
• The actual beneficial owner or a legal representative must submit the claim.
• Joint owners must each sign the claim form.
• Executors, administrators, guardians, conservators and trustees may submit claims on behalf of others and must provide proof of authority.
• Each separate legal entity must submit a separate claim.

How much can class members get?

The total settlement fund is $20,000,000. The amount each class member will receive depends on several factors:

• The number of valid claims submitted
• The number of shares purchased or acquired during the class period
• The timing of each purchase and sale
• The total recognized claims of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

• The estimated average recovery is about $1.23 per share before deductions for taxes, notice and administration costs and attorneys' fees and expenses.
• Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
• The settlement administrator will calculate a recognized loss for each share bought during the class period using the court-approved plan of allocation:
• Alleged artificial inflation ranges from $7.57 to $17.40 per share depending on the purchase date (Table A on Page 10 of the settlement notice).
• The lookback average is the average closing price from Aug. 21, 2023, through the sale date (Table B on Page 10 of the settlement notice).
• For shares sold from Nov. 7, 2022, through Aug. 18, 2023, the recognized loss is the lesser of the purchase-date inflation minus the sale-date inflation or the purchase price minus the sale price.
• For shares sold from Aug. 19, 2023, through Nov. 17, 2023, the recognized loss is the least of the purchase-date inflation, the purchase price minus the sale price or the purchase price minus the lookback average.
• For shares held as of the close of trading on Nov. 17, 2023, the recognized loss is the lesser of the purchase-date inflation or the purchase price minus $22.59, the average closing price during the 90-day lookback period.

• Claimants with an overall market gain on their class-period Napco trades will have a recognized claim of zero. Recognized claims cannot exceed a claimant's actual market loss.
• The settlement administrator will set any recognized loss that calculates to a negative number to zero.
• If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
• Class members whose payment would be less than $10 will not receive a payout.

How to claim a Napco securities class action settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Dec. 28, 2026.

Settlement administrator's mailing address: Napco Securities Settlement, Claims Administrator, c/o Verita Global, P.O. Box 301170, Los Angeles, CA 90030-1170

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or their full taxpayer identification number. They must also provide holdings and transaction information, including:

• Number of shares held as of Nov. 6, 2022
• Trade dates for purchases and sales from Nov. 7, 2022, through Nov. 17, 2023
• Number of shares purchased, acquired or sold
• Total purchase, sale or acquisition price
• Number of shares held as of Aug. 18, 2023, and Nov. 17, 2023

Class members must also provide documentation to support their holdings and transactions. Acceptable proof includes:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing the transactional and holding information found in a confirmation slip or account statement

Payout options

• Physical check
• Electronic payment

$20 million settlement fund

The $20,000,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $6,666,666.67
• Attorneys' expenses: Up to $700,000
• Service award to lead plaintiff: Up to $15,000
• Payments to eligible class members: Remainder of the fund

Important dates

• Opt-out deadline: Nov. 26, 2026
• Fairness hearing: Dec. 17, 2026
• Deadline to file a claim: Dec. 28, 2026

When is the Napco securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and grants final approval of the settlement.

Why did this class action settlement happen?

The class action lawsuit alleged Napco and two individual defendants made false statements and omitted material facts that artificially inflated the company's stock price. The plaintiffs claimed this caused investor losses when corrective information entered the market and removed the alleged inflation from Napco's share price.

Sources

• Claim form
• Class notice