Shareholder rights law firm Robbins LLP is investigating Okta, Inc. (NASDAQ: OKTA) and its officers and directors to determine if they breached their fiduciary duties and violated securities laws by failing to disclose its security breach to investors. 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.
If you would like more information about our investigation of Okta, Inc.'s misconduct, click here.
What is this Case About: According to the complaint against Okta, 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 legal options. Contact Robbins LLP for more information.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
Contact us to learn more:
Shareholder Information Form
About Robbins LLP: A recognized leader in shareholder rights litigation, the attorneys and staff of Robbins LLP have been dedicated to helping shareholders recover losses, improve corporate governance structures, and hold company executives accountable for their wrongdoing since 2002. To be notified if a class action against Okta, Inc. settles or to receive free alerts when corporate executives engage in wrongdoing, sign up for Stock Watch today.
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