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