Law Firm Pomerantz Announces Class Action Filing
NEW YORK, May 20, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP announces that a class action lawsuit has been filed against Okta, Inc. (“Okta” or the “Company”) (NASDAQ: OKTA) and certain of its officers. The class action, filed in the United States District Court for the Northern District of California and registered as 22-cv-02990, is on behalf of a class consisting of all persons and entities other than defendants who have purchased or otherwise acquired Okta securities. between March 5, 2021 and March 22, 2022, both dates inclusive (the “Class Period”), seeking to recover damages caused by the Defendants’ violations of federal securities laws and to pursue remedies for under Sections 10(b) and 20(a)) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 promulgated thereunder, against the Company and certain of its senior officers .
If you are a shareholder who purchased or otherwise acquired Okta securities during the class period, you have until July 19, 2022 to ask the court to name you as the lead plaintiff in the class. A copy of the complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at email@example.com or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those making inquiries by email are encouraged to include their mailing address, phone number and number of shares purchased.
[Click here for information about joining the class action]
Okta provides identity solutions for enterprises, small and medium businesses, universities, nonprofits, and government agencies in the United States and around the world. The Company offers a variety of cybersecurity products and services. Following its merger with Auth0, Inc., a Delaware corporation (“Auth0”), on May 3, 2021, Okta began providing additional Auth0 products related to cybersecurity and login solutions.
The Complaint alleges that, throughout the Class Period, the Defendants made materially false and misleading statements regarding the company’s business, operations and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Okta had inadequate cybersecurity controls; (ii) as a result, Okta’s systems were vulnerable to data breaches; (iii) Okta ultimately suffered a data breach caused by a hacking group, which potentially affected hundreds of Okta customers; (iv) Okta initially did not disclose and later downplayed the severity of the data breach; (v) any of the foregoing, when disclosed, was likely to have a material adverse impact on Okta’s business, financial condition and reputation; and (vi) as a result, the Company’s public statements were materially false and misleading at all material times.
On or around March 21, 2022, hackers known as LAPSUS$ posted screenshots on their Telegram channel, a cloud-based instant messaging service, showing what they claimed to be the internal environment of Okta’s company. Subsequently, on March 22, 2022, the company’s CEO, Defendant Todd McKinnon (“McKinnon”), released a statement on his Twitter account, revealing that “[i]n late January 2022, Okta detected a to attempt to compromise the account of a third-party customer support engineer working for one of our sub-processors” (emphasis added); that “[t]the matter has been investigated and contained by the sub-processor”; that “[w]We believe the screenshots shared online are related to this January event”; and that, “[b]Based on our investigation to date, there is no evidence of ongoing malicious activity beyond the activity detected in January.
On this news, Okta’s stock price fell $2.98 per share, or 1.76%, to close at $166.43 per share on March 22, 2022.
Later, on March 22, 2022, during after-sales hours, in a statement on Okta’s website, the company’s chief security officer, accused David Bradbury (“Bradbury”), revealed , among othersthat “[a]after an in-depth analysis of [the LAPSUS$] complaints, we have concluded that a small percentage of customers – around 2.5% – have potentially been impacted and whose data may have been accessed or processed. »
Following Okta’s updated statement, multiple news outlets reported that hundreds of the company’s customers were potentially impacted by the January 2022 data breach. For example, on March 23, 2022, CNN published an article titled “Okta concedes hundreds of customers could be affected by breach[,]noting that despite the company’s statement that “a small percentage of customers – approximately 2.5% – were potentially impacted[,]”the company” has more than 15,000 customers, according to its website. “That same day, Reuters and others have published similar reports.
Separately, Okta was downgraded by Raymond James from “strong buy” to “market performance”, noting, among other things, that “[w]While the partners were willing to trust Okta’s track record, the handling of its latest security incident adds to our growing concerns.
Following Okta’s post-sale update and Raymond James’ demotion, the company’s stock price fell $17.88 per share, or 10.74%, to close at 148, $55 per share on March 23, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is recognized as one of the leading law firms in the areas of corporate litigation, securities and antitrust. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues the tradition he established, fighting for the rights of victims of securities fraud, breaches of fiduciary duty and corporate misconduct. The firm recovered numerous multimillion-dollar damages on behalf of class members. To see www.pomlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980