Published
October 6, 2026
Investors who bought or otherwise acquired NAPCO Security Technologies (NSSC) common stock between November 7, 2022 and August 18, 2023 and were damaged as a result may qualify to claim a pro rata share of the $20 million NAPCO securities class action settlement. Claims close December 28, 2026, and the final approval hearing is set for December 17, 2026.
Current Status
Claims are open. Claims must be submitted online or postmarked by December 28, 2026; the notice does not specify a time of day. The court granted preliminary approval on September 8, 2026, and the final approval hearing is set for December 17, 2026. No payment date has been announced, and payments cannot begin before the court grants final approval.Free settlement alerts
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Status
Claims Open
Claim Deadline
December 28, 2026
Submitted online or postmarked by that date
Estimated Payout
~$1.23 per share
Average estimate before fees · about $0.78 after · pro rata · no payment under $10
Proof Required
Yes
Broker confirmations or statements for every listed NAPCO trade and holding · last four SSN digits or EIN
What Changed Recently?
Judge Brian M. Cogan of the U.S. District Court for the Eastern District of New York preliminarily approved the $20 million settlement in Zornberg v. NAPCO Security Technologies, Inc. on September 8, 2026. The order set the claim, exclusion and objection deadlines and appointed Verita Global as claims administrator. NAPCO, a maker of alarm, access-control and locking hardware, and its former chief executive Richard L. Soloway and chief financial officer Kevin S. Buchel are the settling defendants.Investors filed the case on August 29, 2023. The plaintiffs allege that NAPCO and the two executives made false statements and left out material facts from November 2022 to August 2023, which artificially inflated the price of NAPCO common stock, and that corrective information released on August 21, 2023 removed that inflation. The defendants deny all allegations of liability, fault or wrongdoing, and the court has not ruled for either side.
The court partly denied a motion to dismiss in April 2025. A later amended complaint had added the company's board members and the underwriters of a NAPCO secondary stock offering, along with claims under the Securities Act of 1933. Those Securities Act claims were dismissed with prejudice and the added defendants were let out of the case when the class was certified on the remaining Securities Exchange Act claims. The parties reached the $20 million deal on May 1, 2026, after a mediation in January did not settle the case, and signed the stipulation of settlement on August 25, 2026.
Who Qualifies?
The class is every person or entity that purchased or otherwise acquired NAPCO common stock between November 7, 2022 and August 18, 2023, inclusive, and was damaged as a result. The class is not limited to U.S. residents, and it covers shares bought through a brokerage account as well as shares held in the investor's own name.Excluded from the class are the defendants and the former defendants, their immediate families, NAPCO's officers and directors during the class period and their immediate families, their legal representatives, heirs and assigns, and any entity in which a defendant or former defendant has a controlling interest. Investment funds in which one of the dismissed underwriters holds a minority interest are not excluded. Anyone who files a valid request for exclusion is also out of the class.
Shares held before November 7, 2022 are not eligible. Neither are shares bought from August 19, 2023 onward, although those trades still have to be reported on the claim form.
How Much Can You Get?
Plaintiffs estimate an average distribution of about $1.23 per eligible share before deductions. Lead counsel will ask for attorneys' fees of up to 33⅓% of the fund, up to $700,000 in expenses, interest on both, and up to $15,000 for the lead plaintiff. If the court approves those amounts, they work out to about $0.45 per share, which leaves an estimated $0.78 per share on average. These are averages; an individual payment depends on when the shares were bought and sold and on how many valid claims are filed.Each claimant's recognized loss comes from the plan of allocation, which assigns an amount of alleged artificial inflation to each share based on when it was bought:
- $7.57 per share for purchases from November 7, 2022 through February 5, 2023
- $11.03 per share for purchases from February 6, 2023 through May 7, 2023
- $17.40 per share for purchases from May 8, 2023 through August 18, 2023
A share sold before the end of the class period is worth the inflation at purchase minus the inflation at sale, capped at the actual trading loss. A share sold from August 19 through November 17, 2023 is worth the smallest of the inflation at purchase, the actual loss, or the purchase price minus the average closing price from August 21, 2023 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, the 90-day average closing price after the alleged corrective disclosure.
Trades are matched first in, first out, starting with shares held before the class period. A claimant with an overall market gain on class-period shares receives nothing, and short-sale coverings carry no recognized loss. The net fund is divided in proportion to each claimant's recognized claim, and no check is issued for less than $10.
What Proof Is Required?
Every trade and holding listed on the claim form must be backed by documentation: copies of brokerage confirmation slips, monthly account statements, or an authorized broker statement showing the same information. Neither the parties nor the administrator has records of individual NAPCO trades, so a claim without documentation can be rejected. The online form accepts PDF uploads of up to 1 MB per file, and a claimant who cannot upload is given a transmittal letter for mailing the records.The form asks for every NAPCO purchase, acquisition and sale from November 7, 2022 through November 17, 2023, plus the number of shares held at the close of trading on November 6, 2022, August 18, 2023 and November 17, 2023. It also asks for the last four digits of the beneficial owner's Social Security number or an employer identification number, a valid email address for online filing, and a signed certification under penalty of perjury. No notice ID is required to file.
What Is the Deadline?
Claims must be submitted online, or mailed with a postmark, no later than December 28, 2026. The official notice gives only the date, without a time of day or timezone.Requests for exclusion must be postmarked by November 26, 2026. Objections, and requests to speak at the hearing, must be received by the court and counsel by November 26, 2026.
How Do You Take Action?
Claims are filed through the official NAPCO Securities Settlement website, which links to the online claim form and to a printable Proof of Claim and Release. The online process walks through claimant identification, the schedule of NAPCO transactions, document upload and the release, and it issues a claim number on a confirmation page once the claim is submitted. The settlement website posts the notice, the stipulation and the court's orders.Institutions and filers with large numbers of transactions can ask the administrator for an electronic file layout through the settlement website; the notice states that those filers still submit a signed paper Proof of Claim.
What Happens Next?
Judge Cogan will hold the final approval hearing at 1:30 p.m. on December 17, 2026, at the federal courthouse in Brooklyn. The court will decide whether to approve the settlement, the plan of allocation and the request for fees and expenses. The notice states that the court may change the date or hold the hearing remotely without further notice, with any change posted on the settlement website.Payments come only after final approval, the end of any appeals and the completion of claims processing. No payment date had been announced as of October 6, 2026.
Sources and Verification
- Official NAPCO Securities Settlement website (Verita Global)
- Notice of Pendency and Proposed Settlement, Proof of Claim and settlement papers (PDF)
- Order Preliminarily Approving Settlement and Providing for Notice, signed September 8, 2026 (ECF No. 111)
- Stipulation of Settlement dated August 25, 2026 (ECF No. 108)
- Zornberg v. NAPCO Security Technologies, Inc. docket (CourtListener)
Questions
Do NAPCO shares bought after August 18, 2023 count toward a claim?
Purchases from August 19, 2023 through November 17, 2023 must be listed on the claim form, but they are not eligible for a recovery. The administrator uses them only to confirm that every relevant trade was reported. Only shares bought or acquired from November 7, 2022 through August 18, 2023 can produce a recognized loss.
What happens to NAPCO shares that were bought and sold before the August 21, 2023 stock drop?
Under the plan of allocation, a share bought and sold inside the class period is worth the alleged inflation at purchase minus the alleged inflation at sale, capped at the actual loss. The plan sets three inflation levels: $7.57 per share from November 7, 2022 to February 5, 2023, $11.03 from February 6 to May 7, 2023, and $17.40 from May 8 to August 18, 2023. A share bought and sold within the same band has a recognized loss of zero.
Does an investor who made money on NAPCO stock overall get anything?
No payment is made in that case. The plan compares the total paid for class-period shares with sale proceeds plus a holding value of $22.59 per share still held on November 17, 2023. An overall market gain sets the recognized claim to zero, and a market loss smaller than the recognized claim caps the claim at that loss.
How are NAPCO shares held in an IRA or a joint account claimed?
The claim form calls for one claim per legal entity. IRA transactions are filed separately from shares held in an individual's own name, and a joint account files its own claim signed by every joint owner. The beneficial owner, not the brokerage that held the shares, signs the claim.
Why does the NAPCO claim form ask for holdings on November 6, 2022?
Shares held before the class period are not eligible, but the administrator needs the starting position to match trades first in, first out. Sales during the class period are matched first against those pre-existing shares, so leaving them off can misstate which sold shares were bought during the class period.
Official Settlement Notice
About This Page
OpenClassActions.com is a consumer news and information site, not a law firm. This article is general information about the NAPCO securities class action settlement. It is not legal advice, and reading it does not create an attorney-client relationship.
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Settlement Amount
$20,000,000
Case Title
Zornberg v. NAPCO Security Technologies, Inc., et al.
Case Number
1:23-cv-06465-BMC
Court
U.S. District Court, Eastern District of New York
Final Approval Hearing
December 17, 2026 at 1:30 PM
Before Judge Brian M. Cogan, Brooklyn
Administrator
Verita Global
Official Website
NAPCO Securities Settlement
