Okta, Inc. (OKTA) Failed to Disclose Security Breach
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Okta, Inc. (NASDAQ: OKTA) securities between March 5, 2021 and March 22, 2022, for violations of the Securities Exchange Act of 1934. Okta provides identity solutions for enterprises, small and medium-sized business, universities, non-profits, and government agencies in the U.S. and internationally. Following its merger with Auth0, Inc. on May 3, 2021, Okta began providing additional Auth0 products related to cybersecurity and login solutions.
According to the complaint, during the class period, defendants made false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, defendants failed to disclose that Okta had inadequate cybersecurity controls, and as a result, its systems were vulnerable to data breaches. Okta ultimately did experience a data breach caused by a hacking group, which potentially affected hundreds of Okta customers. Okta initially did not disclose and subsequently downplayed the severity of the data breach. When Okta revealed the occurrence of the breach, Okta’s stock price fell $2.98 per share, to close at $166.43 per share on March 22, 2022. Then, Raymond James downgraded Okta from “strong buy” to “market perform,” noting, among other things, that “[w]hile partners were willing to trust Okta’s track record, the handling of its latest security incident adds to our mounting concerns.” Following this downgrade, the Company’s stock price fell $17.88 per share, or more than 10%, to close at $148.55 per share on March 23, 2022.
Next Steps: If you acquired shares of Okta, Inc. (OKTA) securities between March 5, 2021 and March 22, 2022, you have until July 19, 2022, to ask the court to appoint you lead plaintiff for the class. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.