A lawsuit was filed on behalf of investors in Okta, Inc. (NASDAQ:OKTA) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 06/01/2022 -- An investor, who purchased shares of Okta, Inc. (NASDAQ: OKTA), filed a lawsuit over alleged Securities Laws violations by Okta, Inc. in connection with certain allegedly false and misleading statements.
Investors who purchased shares of Okta, Inc. (NASDAQ: OKTA) have certain options and for certain investors are short and strict deadlines running. Deadline: July 19, 2022. NASDAQ: OKTA investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
San Francisco, CA based Okta, Inc. provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the United States and internationally. On March 22, 2022, Okta, Inc. (NASDAQ: OKTA) confirmed that in January 2022 the Company had experienced a data breach caused by a hacking group known as Lapsus$, which potentially affected as many as 366 Okta customers. Separately, Okta, Inc. was downgraded by Raymond James from "strong buy" to "market perform," citing a "continually disconnected CIAM go-to-market strategy (i.e. still separate reps for Auth0/Okta, no communication to incent channel cross-sell, no evidence of improved technology/integration [...]) While partners were willing to trust Okta's track record, the handling of its latest security incident adds to our mounting concerns."
Later, on March 22, 2022, during after-market hours, in a statement on Okta's website, the Company's Chief Security Officer,David Bradbury, disclosed, inter alia, that "[a]fter a thorough analysis of [the LAPSUS$] claims, we have concluded that a small percentage of customers – approximately 2.5% – have potentially been impacted and whose data may have been viewed or acted upon."
Shares of Okta, Inc. (NASDAQ: OKTA) declined from $287.44 per share on April 22, 2021, to as low as $135.46 per share on March 25, 2022.
The plaintiff claims that between March 5, 2021 and March 22, 2022, the Defendants made false and/or misleading statements and/or failed to disclose that: Okta had inadequate cybersecurity controls, that as a result, Okta's systems were vulnerable to data breaches, that Okta ultimately did experience a data breach caused by a hacking group, which potentially affected hundreds of Okta customers, that Okta initially did not disclose and subsequently downplayed the severity of the data breach, that all the foregoing, once revealed, was likely to have a material negative impact on Okta's business, financial condition, and reputation, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Okta, Inc. (NASDAQ: OKTA) have certain options and should contact the Shareholders Foundation.
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About The Shareholders Foundation
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.