A securities class action has been filed against Okta, Inc. (OKTA) on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Okta securities between March 5, 2021 through March 22, 2022. This case has been filed in the USDC – N.D.CA.
On March 22, 2022, Okta confirmed that in January 2022 the Company had experienced a data breach caused by a hacking group known as Lapsus$, which potentially affected as many as 366 Okta customers. Separately, Okta was downgraded by Raymond James from “strong buy” to “market perform,” citing a “continually disconnected CIAM go-to-market strategy (i.e. still separate reps for Auth0/Okta, no communication to incent channel cross-sell, no evidence of improved technology/integration […]) While partners were willing to trust Okta’s track record, the handling of its latest security incident adds to our mounting concerns.”
On this news, Okta’s stock price fell $17.88 per share, or 10.74%, to close at $148.55 per share on March 23, 2022.