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OKTA.US
id: 1258

Okta (OKTA) $60M Shareholder Settlement

N.D. California
Court
3:22-cv-02990
Case number
03 Mar 2022
Class period Start
31 Aug 2022
Class period End
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
Stipulative Settlement
Alleged Offence
Misleading Statements
Negligence
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.9
Filing date
20 May 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
Trades matching type
FIFO
+$60,000,000
Cash Settlement Amount

Frequently Asked Questions

Okta Inc

Okta, Inc. operates as an identity partner in the United States and internationally. The company offers Okta's suite of products and services used to manage and secure identities, such as Single Si...

    Ticker
    OKTA.US
    ISIN
    US6792951054
    CIK
    1660134
    Sector
    Technology
    Industry
    Software - Infrastructure
    Country
    USA
    Address
    100 First Street, San Francisco, CA, United States, 94105