NAPCO $20 Million Securities Class Action Settlement, Who Qualifies, How Payouts Work and How to File by December 28, 2026

If you bought NAPCO Security Technologies stock between November 7, 2022 and August 18, 2023, you may be able to claim part of a $20 million cash settlement. Payment is not automatic. You must file a Proof of Claim with your brokerage records by December 28, 2026, and the judge has not yet approved the deal. A fairness hearing is set for December 17, 2026.

This is a securities case, so there is no flat payment. What you get depends on when you bought, whether and when you sold, and how many other investors file claims. Plaintiffs estimate an average recovery of about $1.23 per damaged share before deductions, but the court-authorized notice says your amount could be higher or lower.

NAPCO Securities Settlement Key Facts and Deadlines

Detail	Information
Case	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
Judge	Hon. Brian M. Cogan
Settlement amount	$20 million in cash
Defendants	NAPCO Security Technologies, Inc. (Nasdaq: NSSC), Richard L. Soloway and Kevin S. Buchel
Class period	November 7, 2022 – August 18, 2023, inclusive
Who is covered	Anyone who purchased or otherwise acquired NAPCO common stock in that window and was damaged
Average recovery (estimate)	About $1.23 per damaged share, before taxes, administration costs, fees and expenses
Minimum payment	$10.00. A share that calculates to less is not paid.
Claim deadline	December 28, 2026 (postmarked or submitted online)
Opt-out deadline	November 26, 2026 (postmarked)
Objection deadline	November 26, 2026 (received by the court and counsel)
Fairness hearing	December 17, 2026, 1:30 p.m., Courtroom of Judge Cogan, 225 Cadman Plaza East, Brooklyn
Claims administrator	Verita Global, 1-888-808-1323
Official website	NAPCOSecuritiesSettlement.com

The court can change the hearing date, time or location, and may hold the hearing by phone or video, without sending another notice. Check the official website before you plan around any date.

Who Qualifies for the NAPCO Securities Settlement?

You are in the class if you purchased or otherwise acquired NAPCO common stock from November 7, 2022 through August 18, 2023, both days included, and were damaged as a result. You do not need to still own the shares.

Four groups are excluded:

1. NAPCO, Soloway, Buchel and the former defendants, and their immediate families.
2. NAPCO’s officers and directors during the class period, and their immediate families.
3. The legal representatives, heirs, successors or assigns of anyone above.
4. Any entity in which a defendant or former defendant has or had a controlling interest.

A person who validly opts out is also out. One carve-out matters for funds: mutual funds, ETFs, hedge funds and similar investment vehicles are not excluded, even where an underwriter defendant has an interest in them or advises them, as long as the underwriter and its affiliates do not hold a majority stake.

Receiving the notice or a postcard does not mean you qualify or will be paid. Buying shares after August 18, 2023 does not make a purchase eligible. The claim form asks you to list trades through November 17, 2023, but those later trades are used to calculate losses on class-period purchases, not as eligible purchases.

What Did Investors Allege Against NAPCO, Richard L. Soloway and Kevin S. Buchel?

The plaintiffs say NAPCO, Soloway and Buchel made false statements and omitted material facts during the class period, which artificially inflated the price of NAPCO common stock. They say the inflation came out of the share price when corrective information reached the market on August 21, 2023. The case was brought under the Securities Exchange Act of 1934.

According to NAPCO’s filing with the Securities and Exchange Commission (Form 10-Q for the quarter ended March 31, 2026), the allegations focused on statements in quarterly reports and earnings releases from November 7, 2022 through May 8, 2023, and on claims that financial statements overstated profits and inventory. The notice itself does not go into that detail.

The defendants deny all of it. They deny liability, fault and wrongdoing, and the court has not ruled for either side. The notice says both sides settled to avoid the cost, delay and risk of continuing. If the plaintiffs had failed to prove an essential element, or the defendants had proved a defense at summary judgment, trial or appeal, the class could have recovered less than $20 million or nothing.

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How the NAPCO Securities Case Reached a $20 Million Settlement

Date	What happened
August 29, 2023	Original complaint filed under the Securities Exchange Act of 1934
November 14, 2023	Court appoints Donald W. Hutchings as Lead Plaintiff; Robbins Geller Rudman & Dowd LLP and Johnson Fistel, PLLP named Lead Counsel
February 16, 2024	Amended complaint adds NAPCO board members and the underwriters of NAPCO’s secondary stock offering, and adds City of Warren Police and Fire Retirement System as a plaintiff asserting Securities Act of 1933 claims
April 11, 2025	Court grants in part and denies in part the motion to dismiss
September 29, 2025	Plaintiffs move for class certification
Fall 2025	Defendants agree not to oppose certification of the Exchange Act claims if the Securities Act claims are dropped. Once the court enters the stipulation, those claims are dismissed with prejudice, the former defendants (including the underwriters, dismissed in October 2025) are out, and the class is certified
January 15, 2026	Mediation with David Murphy of Phillips ADR ends without a deal
February 9, 2026	Second amended complaint filed
May 1, 2026	Parties agree to settle for $20 million after more talks with the mediator
August 25, 2026	Stipulation of Settlement signed
September 9, 2026	Court-authorized notice issued

The caption names Randy Zornberg, but the notice identifies Donald W. Hutchings and City of Warren Police and Fire Retirement System as the plaintiffs. Requests for pre-motion conferences on summary judgment were still pending when the deal was reached.

How Much Could You Get From the NAPCO Settlement?

The $20 million is not what class members split. Taxes, notice and administration costs, and court-approved attorneys’ fees and expenses come out first. What remains is the Net Settlement Fund, divided among approved claimants in proportion to their Recognized Claims.

Attorneys’ fees and costs in the NAPCO settlement

Lead Counsel will ask the court for fees of up to 33⅓% of the settlement, expenses up to $700,000, and interest on both at the rate earned by the fund. The Lead Plaintiff may ask for an award of up to $15,000. By our arithmetic, a full 33⅓% fee is about $6,666,667, so fees, expenses and the Lead Plaintiff award together could reach about $7,381,667 before interest, taxes and administration costs. The notice says that if the court grants all of its requests, the cost averages about $0.45 per NAPCO share. The court decides what is awarded and may award less.

The $1.23 per share estimate

The notice puts the average distribution at about $1.23 per share, before taxes on the fund’s income, notice and administration costs, and fees and expenses. It is based on plaintiffs’ estimate of the number of damaged shares and is only an average.

The NAPCO plan of allocation formula

Each purchase gets a Recognized Loss Amount per share, based on how much artificial inflation the plan assigns to the day you bought:

Purchase window	Inflation per share
Nov. 7, 2022 – Feb. 5, 2023	$7.57
Feb. 6, 2023 – May 7, 2023	$11.03
May 8, 2023 – Aug. 18, 2023	$17.40

The loss per share depends on what you did with the shares:

• Sold November 7, 2022 through August 18, 2023: the lesser of (a) the inflation at purchase minus the inflation at sale, or (b) the purchase price minus the sale price. If you bought in an earlier, lower-inflation window and sold in a later one, the result can be zero.
• Sold August 19 through November 17, 2023: the least of the inflation at purchase, the purchase price minus the sale price, or the purchase price minus the average closing price from August 21, 2023 up to your sale date (the notice’s Table B).
• Still held at the close on November 17, 2023: the lesser of the inflation at purchase or the purchase price minus $22.59, the 90-day average closing price after the August 21, 2023 disclosure.

Here is a made-up example, not from the notice. Say you bought 100 shares at $40 on June 1, 2023 and still held them on November 17, 2023. Your per-share loss is the lesser of $17.40 and $17.41 ($40 minus $22.59), so $17.40. Your Recognized Claim is $1,740. Your check is that figure’s share of the Net Settlement Fund compared with the approved claims of everyone else.

Other rules in the plan:

• Purchases and sales are matched first-in, first-out, beginning with shares held at the start of the class period.
• Short sales that cover, and uncovered short sales, produce a Recognized Loss of zero.
• If you had an overall market gain on your NAPCO trades during the class period, your Recognized Claim is zero.
• If your actual market loss is smaller than your Recognized Claim, the claim is limited to the actual loss.
• Trade dates, not settlement dates, control. Shares acquired through option exercise are dated at the exercise date and priced at the exercise price.
• Gifts, inheritances and transfers by operation of law do not count as purchases or sales for the formula.
• Any share of the fund that calculates to less than $10.00 is not paid.

The notice says the plan is not a formal damages analysis and that its figures are not estimates of what claimants would have won at trial. The court may approve or modify the plan without further notice.

How to File a Claim in the NAPCO Securities Settlement

You can file online at NAPCOSecuritiesSettlement.com or mail the Proof of Claim to: NAPCO Securities Settlement, Claims Administrator, c/o Verita Global, P.O. Box 301170, Los Angeles, CA 90030-1170. Mailed forms must be postmarked, and online claims received, by December 28, 2026. The administrator says emailed claims are not reviewed.

1. Gather your trading records. Use broker confirmations, monthly account statements or an authorized statement from your broker. Do not send originals. The administrator does not have your trade records, and missing documentation can delay or sink a claim.
2. List your holdings on three dates. The form asks for the number of shares you held at the close of trading on November 6, 2022, August 18, 2023 and November 17, 2023, plus every purchase and sale from November 7, 2022 through November 17, 2023.
3. Add identity details. The form asks for the last four digits of your Social Security number (or the full tax ID for entities) and your signature under penalty of perjury.
4. File one claim per legal owner. An IRA is its own claimant, separate from your individual account, and joint owners file together. An entity with several brokerage accounts combines them on one claim.
5. Estates. If you are filing for someone who has died, include a death certificate and proof of your authority. Payment goes to the estate or beneficial owner.
6. Paper forms. Use blue or black ink and do not highlight the documents. Claimants with a very large number of trades can ask the administrator at [email protected] about an electronic file, but they still have to send a manually signed paper form.

Your Options in the NAPCO Securities Settlement: File a Claim, Opt Out, Object or Do Nothing

Option	What it means	Deadline
File a Proof of Claim	The only way to be eligible for a payment. You stay in the class and give up the right to sue over the released claims.	December 28, 2026
Exclude yourself	No payment. You keep the right to sue the defendants on your own, if your claims are not time-barred.	Postmarked by November 26, 2026
Object	Tell the court what you do not like about the settlement, the plan of allocation or the fee request. You stay in the class.	Received by November 26, 2026
Do nothing	No payment, and you are still bound by the settlement and release.	None

How to opt out of the NAPCO securities settlement

Send a letter by first-class mail to NAPCO Securities Settlement, Claims Administrator, c/o Verita Global, EXCLUSIONS, P.O. Box 5100, Larkspur, CA 94977-5100, postmarked by November 26, 2026. It must say you “request exclusion from the Class in the NAPCO Securities Settlement” and include your name, address, email, phone and signature, plus every NAPCO purchase, acquisition and sale during the class period (dates, share counts and prices). Opt-outs cannot object. If opt-outs pass a confidential threshold the parties agreed on, NAPCO has the option to terminate the settlement.

Opting out is risky. The notice warns that the defendants can raise statutes of limitation and statutes of repose against any claim you bring on your own. Talk to an attorney before you opt out.

How to object to the NAPCO securities settlement

Send a signed letter saying you wish to comment on or object to the settlement in the NAPCO Securities Settlement. Include your name, address, email and phone number, the dates, prices and number of shares you bought, acquired or sold in the class period, and copies of documents proving those trades. State with specificity your reasons, with any legal or evidence support, say whether the objection applies only to you, to a subset or to the whole class, and list every class action settlement you or your lawyer has objected to before.

File it with the Clerk of the Court, U.S. District Court, Eastern District of New York, 225 Cadman Plaza East, Brooklyn, NY 11201, and mail or deliver copies to Lead Counsel (Robbins Geller Rudman & Dowd LLP, Attn: Ellen Gusikoff Stewart, 655 West Broadway, Suite 1900, San Diego, CA 92101, and Johnson Fistel, PLLP, Attn: Michael I. Fistel, Jr., 40 Powder Springs Street, Marietta, GA 30064) and to defendants’ counsel (Simpson Thacher & Bartlett LLP, Attn: Jonathan K. Youngwood, 425 Lexington Avenue, New York, NY 10017). Everything must be received by November 26, 2026. You do not have to attend the hearing. To speak, include a statement that it is your “Notice of Intention to Appear in the NAPCO Securities Settlement.”

What You Give Up by Staying in the NAPCO Securities Class

If you do not opt out and the court approves the settlement, you release all claims against NAPCO, Soloway, Buchel, the former defendants and a long list of related parties. The release covers claims that were or could have been brought, including unknown claims, that relate to buying, selling or holding NAPCO securities during the class period. It does not cover claims to enforce the settlement or derivative claims. The release applies whether or not you file a claim. The notice also has you waive the protection of California Civil Code § 1542 and similar laws for unknown claims.

The Securities Laws Behind the NAPCO Class Action

This section is background on the legal framework. It does not add claims beyond those in the notice.

Securities Exchange Act of 1934. The case was brought under the Exchange Act. Private securities fraud cases like this one usually rest on Section 10(b) and SEC Rule 10b-5, which bar material misstatements and omissions in connection with buying or selling securities, and on Section 20(a), which can make company executives liable as “control persons.” Plaintiffs generally must show a false or misleading statement, intent or recklessness, reliance, a loss and a connection between the misstatement and the loss. The defendants dispute all of that.

Securities Act of 1933. The amended complaint also asserted Securities Act claims on behalf of City of Warren Police and Fire Retirement System against NAPCO board members and the underwriters of its secondary offering. Those claims were dismissed with prejudice as part of the deal that led to class certification, and the former defendants were dismissed.

Private Securities Litigation Reform Act (PSLRA). The PSLRA, codified in part at 15 U.S.C. § 78u-4, governs lead plaintiff selection, the damages cap that drives the “90-day look-back” in the plan of allocation (§ 78u-4(e)(1)) and awards to lead plaintiffs for their time and expenses (§ 78u-4(a)(4)). The $22.59 figure in the plan is the mean closing price in the 90-day look-back period that ran from August 19 through November 17, 2023.

Federal Rule of Civil Procedure 23. The notice was issued under Rule 23. The court must find a class settlement fair, reasonable and adequate, and fees are decided by the judge, not by the parties.

Time limits. Federal securities fraud claims generally face both a statute of limitations and an outer statute of repose (28 U.S.C. § 1658(b)). The notice specifically warns people who opt out that the defendants can argue their own claims are untimely. Whether your claim is still timely is a question for a securities attorney.

Taxes. The settlement fund pays taxes on its income before distribution. Whether a payment is taxable to you depends on your situation, so consult a tax professional.

When Will NAPCO Securities Settlement Payments Go Out?

Not soon. The court will decide whether to approve the settlement and plan of allocation at the December 17, 2026 hearing. If it does, there may be appeals, and claims processing takes time. The notice gives no payment date and asks for patience. Check the settlement website for updates after the hearing.

NAPCO Securities Settlement Contact Information

• Claims administrator (Verita Global): 1-888-808-1323 or [email protected]
• Lead Counsel: Greg Wood, Robbins Geller Rudman & Dowd LLP, 1-800-449-4900, [email protected]; Michael I. Fistel, Jr., Johnson Fistel, PLLP, 1-470-632-6000, [email protected]

Do not call the court or the defendants with questions. The administrator cannot tell you whether your trades qualify before it processes a claim, and it does not hold your stock records. Your broker does.

For other investor settlements, read Everbridge $85 Million Securities Class Action Settlement, Who Qualifies, How Much You Could Get and How to File by November 25, 2026, WEBTOON $10.05M Securities Class Action Settlement, Who Qualifies, How Payments Are Calculated and How to File by December 14, 2026 and Fidelity National Information Services $210M Securities Settlement, Who Can File a Claim?.

Frequently Asked Questions About the NAPCO $20 Million Securities Settlement

Who is eligible for the NAPCO securities class action settlement?

Anyone who purchased or otherwise acquired NAPCO Security Technologies common stock between November 7, 2022 and August 18, 2023, inclusive, and was damaged, except the excluded groups listed above.

What is the deadline to file a NAPCO settlement claim?

December 28, 2026. Mailed claims must be postmarked by then, and online claims must be submitted by then.

How much will I get from the NAPCO settlement?

There is no fixed amount. Plaintiffs estimate an average of about $1.23 per damaged share before deductions, but your payment depends on when you bought and sold and on the total of all approved claims. Payments under $10.00 are not made.

Do I have to own NAPCO stock today to file a claim?

No. You need to have purchased or acquired it during the class period. You do have to report your holdings and trades, including your position on November 17, 2023.

Do I need to prove my NAPCO stock purchases?

Yes. The claim form requires broker confirmations or account statements for your transactions and holdings. If you do not have them, ask your broker.

Did NAPCO admit wrongdoing in the settlement?

No. The defendants deny all allegations of liability, fault and wrongdoing, and the court has not decided for either side.

Has the court approved the NAPCO settlement?

Not yet. The judge will consider approval, the plan of allocation and the fee request at the December 17, 2026 hearing.

Can I file a NAPCO claim by email?

No. The administrator says emailed claims are not reviewed. File online or by mail.

What happens if I do nothing?

You get no money, and unless you opt out you cannot sue the defendants over the released claims.

Who are the lawyers for the NAPCO class?

The court appointed Robbins Geller Rudman & Dowd LLP and Johnson Fistel, PLLP as Lead Counsel. Additional counsel is VanOverbeke, Michaud & Timmony, P.C. Class members do not pay them directly. Any fees come out of the settlement fund if the court approves them.

Update Log

Date	Update
October 14, 2026	Article published, based on the court-authorized notice dated September 9, 2026, the Proof of Claim and the official settlement website

Sources

1. Notice of Pendency and Proposed Settlement of Class Action, Zornberg v. NAPCO Security Technologies, Inc., et al., No. 1:23-cv-06465-BMC (E.D.N.Y.), dated September 9, 2026: https://www.napcosecuritiessettlement.com/media/7429256/v3_napco_notice_092326_final.pdf
2. Proof of Claim and Release: https://www.napcosecuritiessettlement.com/media/7429259/napco_pocgi_poc_final_web.pdf
3. NAPCO Securities Settlement official website (Verita Global): https://www.napcosecuritiessettlement.com/
4. NAPCO Securities Settlement Frequently Asked Questions: https://www.napcosecuritiessettlement.com/frequently-asked-questions.aspx
5. Online claim filing portal: https://veritaconnect.com/NAPCOSecuritiesSettlement/
6. NAPCO Security Technologies, Form 10-Q for the quarter ended March 31, 2026: https://www.sec.gov/Archives/edgar/data/69633/000110465926055383/nssc-20260331x10q.htm

This article is general information, not legal advice. The settlement is proposed and subject to final court approval. NAPCO Security Technologies, Inc., Richard L. Soloway and Kevin S. Buchel deny liability, and the court has not ruled that the allegations were proven. For advice about your situation, consult a qualified attorney.

Researched and written by Israr Ahmad, legal content researcher and founder of AllAboutLawyer.com. All facts verified against the court-authorized Notice of Pendency and Proposed Settlement of Class Action (dated September 9, 2026), the Proof of Claim and Release form and the settlement website run by claims administrator Verita Global (NAPCOSecuritiesSettlement.com), as of October 14, 2026. Last Updated: October 14, 2026.