According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that:
- NAPCO failed to address any material weaknesses with internal controls regarding cost of goods sold (“COGS”) and inventory;
- NAPCO downplayed the severity of material weaknesses regarding their internal controls;
- NAPCO’s unaudited financial statements from September 30, 2022 to the present included “certain errors” such as overstating inventory and understanding net COGS, resulting in overstated gross profit, operating income and net income for each period;
- as a result, NAPCO would need to restate its previously filed unaudited financial statements for certain periods; and
- as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
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