Okta, Inc.

According to the complaint, 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 allegedly failed to disclose to investors that:

(i) Okta had inadequate cybersecurity controls;
(ii) as a result, Okta’s systems were vulnerable to data breaches;
(iii) Okta ultimately did experience a data breach caused by a hacking group, which potentially affected hundreds of Okta customers;
(iv) Okta initially did not disclose and subsequently downplayed the severity of the data breach;
(v) all the foregoing, once revealed, was likely to have a material negative impact on Okta’s business, financial condition, and reputation; and
(vi) as a result, the company’s public statements were materially false and misleading at all relevant times.