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OKTA.US
id: 1258

Okta (OKTA) $60M Shareholder Settlement

Late claims are being considered for compensation, subject to approval.
N.D. California
Court
3:22-cv-02990
Case number
03/03/2022
Class period Start
08/31/2022
Class period End
10/29/2024
Claim deadline
Okta (OKTA) has agreed to settle $60M with investors to resolve claims that it hid weaknesses in its cybersecurity.

Outline

Back in 2022, Okta was accused of having weak cybersecurity and hiding a data breach by the hacking group LAPSUS$. Following this, $OKTA significantly fell, and the company faced a lawsuit from investors.

Timeline
  • On March 21, 2022: LAPSUS$ claimed access to Okta’s internal systems.
  • On March 22, 2022: Okta’s CEO disclosed the breach on Twitter.
  • On March 23, 2022: After this news, $OKTA fell by 10.74%.
  • On May 20, 2022: Okta faced a lawsuit from investors for not disclosing the breach on time and having poor cybersecurity measures.
Background

On March 21, 2022, the hacking group LAPSUS$ posted screenshots on their Telegram channel claiming they had accessed Okta’s internal systems.

Initially, Okta stated that the “service has not been breached and remains fully operational” and that a third party made an “unsuccessful attempt” to enter their systems.

Despite management’s initial statements about the company’s strong cybersecurity measures, the next day, Okta's CEO, Todd McKinnon, disclosed the breach on Twitter, and CSO, David Bradbury, revealed through an official release that “approximately 2.5% of customers have potentially been impacted”.

After management revealed the breach, $OKTA fell by 10.74% on March 23, 2022.

In May 2022, Okta was sued by investors who claimed the company failed to disclose the breach on time and overstated its cybersecurity measures.

What can investors expect now?

Okta (OKTA) has agreed to settle for $60M with investors to resolve claims that the company hid weaknesses in its cybersecurity.

If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements
Negligence
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
1.17
Filing date
05/20/2022
Plaintiffs
City of Miami Fire Fighters’ and Police Officers’ Retirement Trust
Attorneys
Pomerantz LLP and Klausner, Kaufman, Jensen & Levinson
Defendants
Todd McKinnon, Brett Tighe, Michael Kourey, William E. Losch and David Bradbury
Judge
Susan Illston
Administrator
JND Legal Administration
Court hearing date
11/08/2024
Exclusion deadline
10/18/2024
Objection deadline
10/18/2024
Hearing deadline
10/18/2024
Attorney fee
$13,610,000
Trades matching type
FIFO
+$60,000,000
Cash Settlement Amount