NAPCO $20M Securities Settlement (NSSC)

Only a net NSSC loss qualifies. Being in this class is not the same as having a payable claim, and on NAPCO that gap decides most claims. If your overall NAPCO trading during the class period came out at a market gain, your Recognized Claim is set to zero — you stay in the class, you are bound by the release unless you opt out, and you are paid nothing. And because a share sold during the class period is valued at the alleged inflation at purchase minus the alleged inflation at sale, a share bought and sold inside one of the plan's three inflation bands is worth $0.00 no matter how much money it actually lost. Investors who purchased or otherwise acquired NAPCO Security Technologies, Inc. (NSSC) common stock between November 7, 2022 and August 18, 2023, inclusive, and were damaged thereby may claim a pro rata share of a $20,000,000 cash settlement fund. The Proof of Claim must be filed online or postmarked by December 28, 2026. This settlement pays stock investors only. It is not a data breach, a product refund or a customer claim — NAPCO makes alarm, access-control and locking hardware, and owning or installing its equipment gives you nothing here. The headline figure of about $1.23 a share is a class-wide average before fees; the notice puts the average cost per share at about $0.45, leaving roughly $0.78. The $22.59 90-day look-back cap bites on only one slice of the settlement — shares still held at the close on November 17, 2023 — and the $700,000 expense cap covers only litigation expenses, not the 33-1/3% fee request, the taxes or the administration costs. Brokerage documentation is required for every trade you list, and a claimant whose pro rata share comes to less than $10.00 is paid nothing.

Do I Qualify?

You may be eligible if:

• You may qualify if you purchased or otherwise acquired NAPCO Security Technologies, Inc. common stock between November 7, 2022 and August 18, 2023, both dates inclusive, and were damaged as a result. The class definition carries no state residency test and no U.S.-exchange requirement — it turns only on having bought or acquired the stock inside that window. Transactions executed outside regular trading hours for the U.S. financial markets are treated as occurring in the next regular session.
• THIS IS A SHAREHOLDER CASE, NOT A CUSTOMER CASE. NAPCO makes alarm, access-control and locking hardware. Buying, owning, installing or being monitored by NAPCO equipment does not qualify you, and there is no data breach, product defect or refund component. The only thing that counts is having bought or acquired the company's common stock inside the class period.
• QUALIFYING FOR THE CLASS IS NOT THE SAME AS HAVING A PAYABLE CLAIM, AND HERE THE GAP IS LARGE. Under paragraph 9 of the Plan of Allocation, if your overall class-period NAPCO transactions produced a market gain, your Recognized Claim is zero. You remain a Class Member, you are bound by the release unless you opt out by November 26, 2026, and you collect nothing. If you had an overall market loss but it was smaller than your calculated Recognized Claim, the claim is limited to that actual loss. Gain or loss is measured as your Total Purchase Amount less the sum of your Total Sales Proceeds and a $22.59-per-share Holding Value on class-period shares still held at the close of trading on November 17, 2023.
• A SHARE BOUGHT AND SOLD INSIDE THE SAME INFLATION BAND IS WORTH ZERO. Table A sets the alleged artificial inflation at $7.57 per share for purchases from November 7, 2022 through February 5, 2023, $11.03 from February 6 through May 7, 2023, and $17.40 from May 8 through August 18, 2023. A share sold inside the class period is worth the inflation at purchase minus the inflation at sale, capped at the purchase-minus-sale loss, so an in-and-out trade inside one band produces $0.00 however much money it actually lost. The alleged corrective information came out on August 21, 2023, so in practice a payable claim generally means shares still held into that disclosure.
• Shares you already held before November 7, 2022 are not eligible, and shares purchased from August 19, 2023 onward earn no recovery. Both still matter to the arithmetic: FIFO matching starts with the stock you held when the class period opened, so class-period sales are matched against those older shares first, and the plan matches sales through the close of trading on November 17, 2023.
• Only NAPCO common stock is covered by the Plan of Allocation. Stock acquired or sold by exercising an option counts at the exercise date and the exercise price. Shares received by gift, inheritance or operation of law are not treated as a purchase unless the donor or decedent bought or sold them inside the class period, the instrument of gift or assignment specifically provides that it transfers those rights, and no duplicative claim has been filed for those shares. Short positions earn nothing: a purchase covering a short sale is zero, an uncovered short sale is zero, and a class-period purchase matched FIFO against a short position is not entitled to a recovery.
• Excluded from the Class are the Defendants and Former Defendants and members of their immediate families; the officers and directors of NAPCO during the Class Period and members of their immediate families; the legal representatives, heirs, successors or assigns of any of the foregoing; and any entity in which any Defendant or Former Defendant has or had a controlling interest. Anyone who submits a valid and timely request for exclusion, postmarked by November 26, 2026, is also out. Investment Vehicles are expressly not excluded — mutual funds, mutual fund families, exchange traded funds, fund of funds and hedge funds in which one of the dismissed Underwriter Defendants holds a minority, non-controlling interest stay in the Class.
• Receipt of the Notice or the Postcard Notice does not mean you are a Class Member or that you will be paid, and no distribution at all is made to a claimant whose pro rata share of the Net Settlement Fund calculates to less than $10.00.

Documentation is required for every transaction you list, and there is no document-free tier in this settlement. Paragraph 4 of the Plan of Allocation calculates a Recognized Loss Amount only for a class-period purchase that is listed in the Proof of Claim and for which adequate documentation is provided, so a trade you cannot document earns nothing even when it sits squarely inside the class period. The notice instructs you to read the Proof of Claim instructions carefully, include all the documents the form asks for, sign it, and file it online at www.NAPCOSecuritiesSettlement.com or by mail. In practice that means copies of broker trade confirmations, monthly brokerage account statements or an equivalent broker-issued record covering each listed trade and holding — your own broker paperwork is what gates the claim, so request copies from your broker if you no longer have them, and check the form itself for its exact document and upload requirements. The schedule you have to document runs past the end of the class period. FIFO matching begins with the NAPCO common stock you held when the class period opened on November 7, 2022, the plan matches sales through the close of trading on November 17, 2023, and it ascribes a $22.59 Holding Value to class-period shares still held at that close — so your opening position, your post-class-period sales and your November 17, 2023 holdings all have to be reported and supported even though purchases from August 19, 2023 onward earn no recovery. The notice describes no notice ID, claim number or PIN gate on filing: the Proof of Claim and Release can be downloaded from www.NAPCOSecuritiesSettlement.com and submitted online there. It also states plainly that receipt of the Notice or the Postcard Notice does not make you a Class Member or entitle you to a payment. Claims are submitted by the beneficial owner rather than by the brokerage or nominee listed as record owner.

What Happened?

Lead Plaintiff Donald W. Hutchings sued NAPCO Security Technologies, Inc. and two former executives, chief executive Richard L. Soloway and chief financial officer Kevin S. Buchel, in the U.S. District Court for the Eastern District of New York. The case is Zornberg v. NAPCO Security Technologies, Inc., et al., No. 1:23-cv-06465-BMC, assigned to the Honorable Brian M. Cogan. NAPCO makes alarm, access-control and locking hardware. Plaintiffs allege that the company and the two executives made false statements and omitted material facts during the class period, which had the effect of artificially inflating the trading price of NAPCO common stock, and that corrective information released to the market on August 21, 2023 removed that alleged inflation. Defendants have denied and continue to deny all allegations of liability, fault or wrongdoing, and the Court has not decided in favor of either side.

The initial complaint was filed on August 29, 2023 under the Securities Exchange Act of 1934. On November 14, 2023 the Court appointed Donald W. Hutchings as Lead Plaintiff and Robbins Geller Rudman & Dowd LLP and Johnson Fistel, PLLP as Lead Counsel. An Amended Complaint filed February 16, 2024 added a number of NAPCO board members and the underwriters of NAPCO's secondary stock offering as defendants, and added City of Warren Police and Fire Retirement System as a plaintiff asserting claims under the Securities Act of 1933. On April 11, 2025 the Court granted in part and denied in part the motion to dismiss. Plaintiffs moved for class certification on September 29, 2025; Defendants agreed not to oppose certification of the Exchange Act claims if Plaintiffs dismissed the Securities Act claims, and on entry of that stipulation the Securities Act claims were dismissed with prejudice, the Former Defendants including the underwriters were dismissed, and the Class was certified. A Second Amended Complaint was filed February 9, 2026 and answered February 23, 2026, and both sides had requested pre-motion conferences for summary judgment when the Settlement was reached.

The parties mediated with David Murphy of Phillips ADR on January 15, 2026 without reaching a deal. After further discussions with the mediator, on May 1, 2026 they agreed to settle for a cash payment of $20 million, and the Stipulation of Settlement was executed on August 25, 2026. The research source reports that Judge Cogan signed the order providing for notice on September 8, 2026 (ECF No. 111); the court-authorized notice itself is dated September 9, 2026. Verita Global is the Claims Administrator. The Settlement Hearing is set for 1:30 p.m. on December 17, 2026 before Judge Cogan at 225 Cadman Plaza East, Brooklyn, NY 11201, where the Court will consider whether the Settlement, the Plan of Allocation and the fee and expense request are fair, reasonable and adequate. The Court may change the date without further notice, so check the docket or the settlement website before making plans to attend. The Settlement has not received final approval. Payments are made only after approval, the resolution of any appeals and the completion of all claims processing, and no payment date had been announced as of October 7, 2026.

How to File Your Claim

1. File online at www.NAPCOSecuritiesSettlement.com, or download the Proof of Claim and Release from that site and mail it to NAPCO Securities Settlement, c/o Verita Global, Claims Administrator, P.O. Box 301170, Los Angeles, CA 90030-1170
2. The Proof of Claim must be submitted online or postmarked no later than December 28, 2026. The official notice gives a date only, with no time of day and no time zone
3. DOCUMENTATION IS MANDATORY FOR EVERY TRANSACTION YOU LIST, and there is no document-free tier. Paragraph 4 of the Plan of Allocation calculates a Recognized Loss Amount only for a class-period purchase that is listed in the Proof of Claim and for which adequate documentation is provided, so a trade you cannot document earns nothing even when it sits squarely inside the class period. The notice tells you to read the Proof of Claim instructions carefully, include all the documents the form asks for, and sign it
4. YOUR TRANSACTION SCHEDULE HAS TO RUN PAST THE END OF THE CLASS PERIOD. FIFO matching begins with the NAPCO common stock you held when the class period opened on November 7, 2022, the plan matches sales through the close of trading on November 17, 2023, and it ascribes a $22.59 Holding Value to class-period shares still held at that close. Purchases from August 19, 2023 onward earn no recovery but still belong on the schedule so the matching comes out right
5. Trades count on the contract or trade date rather than the settlement or payment date, and a transaction executed outside regular trading hours for the U.S. financial markets is treated as occurring in the next regular trading session
6. Claims are filed by the beneficial owner, not by the brokerage or nominee listed as record owner. For help, call the Claims Administrator toll-free at 1-888-808-1323 or email info@NAPCOSecuritiesSettlement.com. Do not call the Court or Defendants
7. Do not confuse the claim deadline with the other two dates. A request for exclusion must be postmarked by November 26, 2026, and an objection or a request to speak at the hearing must be received by the Court and counsel by November 26, 2026. Judge Brian M. Cogan will hold the Settlement Hearing at 1:30 p.m. on December 17, 2026 at 225 Cadman Plaza East, Brooklyn, NY 11201, and the Court may change that date without further notice
8. Visit the official claim form: https://www.napcosecuritiessettlement.com/

How Much Will I Actually Get?

Pro rata cash from the $20,000,000 settlement fund. Your Recognized Claim is the sum of your per-share Recognized Loss Amounts; it is divided by the total Recognized Claims of all Authorized Claimants and multiplied by the Net Settlement Fund. THERE IS A SINGLE PAYMENT PATH AND NOTHING TO ELECT: the per-share amounts are added together into one Recognized Claim, and the Plan of Allocation decides each share's value for you. THE HEADLINE $1.23 A SHARE IS A GROSS CLASS-WIDE AVERAGE, NOT AN OFFER. The notice estimates the average distribution at approximately $1.23 per allegedly damaged share before taxes on the fund's income, notice and administration costs and Court-awarded attorneys' fees and expenses, and puts the average cost per share at approximately $0.45 if the amounts requested are approved, which leaves roughly $0.78 per share. The notice calls these estimates in its own words and says an individual Class Member may receive more or less. THE BIGGEST LIMIT IS NOT A DOLLAR FIGURE AT ALL. Under paragraph 9, if your overall class-period NAPCO transactions produced a market gain your Recognized Claim is zero, and if you had an overall market loss that was smaller than your calculated Recognized Claim, the claim is cut back to the actual loss. Table A assigns alleged artificial inflation of $7.57 per share to purchases from November 7, 2022 through February 5, 2023, $11.03 from February 6 through May 7, 2023, and $17.40 from May 8 through August 18, 2023. A share bought and sold inside the class period is worth the lesser of the inflation at purchase minus the inflation at sale, or the purchase price minus the sale price, so a share bought and sold inside the same inflation band is worth $0.00. A share sold from August 19 through November 17, 2023 is worth the least of the inflation at purchase, the purchase-minus-sale loss, or the purchase price minus the Table B average closing price through the sale date. A share still held at the close on November 17, 2023 is worth the lesser of the inflation at purchase or the purchase price minus $22.59. A Recognized Loss Amount that calculates to a negative number is set to zero. THE $22.59 LOOK-BACK CAP APPLIES TO ONE SLICE OF THE SETTLEMENT, NOT TO THE WHOLE THING: $22.59 is the mean closing price over the statutory 90-day look-back period of August 19 through November 17, 2023 required by Section 21D(e)(1) of the Exchange Act, and it limits only shares still held at the close of that period. Shares sold inside the look-back window are capped instead by the rolling Table B average closing price, which starts at $21.11 on August 21, 2023 and reaches $22.59 by November 17, 2023. Shares sold on or before August 18, 2023 get no look-back cap at all. A SEPARATE CAP APPLIES ONLY TO LITIGATION EXPENSES AND NOT TO THE FEE: Lead Counsel will apply for attorneys' fees not to exceed 33-1/3% of the Settlement Amount, plus expenses not to exceed $700,000, plus interest earned on both at the fund's rate, and the Lead Plaintiff may seek up to $15,000 under 15 U.S.C. 78u-4(a)(4). Taxes and notice and administration expenses also come out of the fund and carry no stated cap. Whatever the Court approves is deducted before distributions are calculated. Purchases and sales are matched first-in, first-out beginning with the shares you held when the class period opened. A purchase that matches against or covers a short sale carries a Recognized Loss Amount of zero, an uncovered short sale is zero, and a class-period purchase matched FIFO against a short position is not entitled to a recovery. Nothing is distributed to an Authorized Claimant whose pro rata share of the Net Settlement Fund calculates to less than $10.00. Payments are made only after the Court approves the Settlement and the Plan of Allocation, any appeals are resolved and all claims processing is complete.

Last reviewed: October 7, 2026 | Information verified from court records and official settlement documents.

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