Shareholders with $100,000 losses or more are encouraged to contact the firm.
BENSALEM, Pa–(BUSINESS WIRE)–Law Offices of Howard G. Smith reminds investors of the upcoming July 19, 2022 deadline to file a lead plaintiff motion in the case filed on behalf of investors who purchased Okta, Inc. (“Okta” or the “Company”) (NASDAQ: OKTA) securities between March 5, 2021 and March 22, 2022, inclusive (the “Class Period”).
Investors suffering losses on their Okta investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On or around March 21, 2022, hackers posted screenshots showing what they claimed was Okta’s internal company environment. In response, the Company’s CEO disclosed that in late January 2022, Okta had detected an attempt to compromise the account of a third party customer support engineer working for one of its subprocessors, and that the matter was “investigated and contained by the subprocessor.” The CEO stated that the hackers’ screenshots were connected to the event and that, based on the Company’s investigation, there was “no evidence of ongoing malicious activity.”
On this news, Okta’s stock fell $2.98, or 1.8%, to close at $166.43 per share on March 22, 2022, thereby injuring investors.
Then, on March 22, 2022, after the market had closed, the Company disclosed that approximately 2.5% of customers had potentially been impacted by the hackers and had their data “viewed or acted upon.”
On this news, Okta’s stock fell $17.88, or 10.7%, to close at $148.55 per share on March 23,2022, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Okta had inadequate cybersecurity controls; (2) as a result, Okta’s systems were vulnerable to data breaches; (3) Okta ultimately did experience a data breach caused by a hacking group, which potentially affected hundreds of Okta customers; (4) Okta initially did not disclose and subsequently downplayed the severity of the data breach; (5) all the foregoing, once revealed, was likely to have a material negative impact on Okta’s business, financial condition, and reputation; and (6) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Okta securities during the Class Period, you may move the Court no later than July 19, 2022 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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