Governance & Derivative
Okta, Inc. (NasdaqGS: OKTA)
Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC (“KSF”), announces that KSF has commenced an investigation into Okta, Inc. (“Okta” or the “Company”) (NasdaqGS: OKTA).
On May 3, 2021, Okta, a data security company, announced the successful completion of the acquisition of Auth0 in a transaction valued at approximately $6.5 billion, which purportedly would “complement Okta’s growth in the [customer identity and access management (‘CIAM’) software] market.” However, despite reassuring investors that the two companies were integrating seamlessly, on March 22, 2022, the Company disclosed that a data breach via an unsecured administrative tool had been detected in late January 2022, which news led to analysts downgrading the Company’s stock based on the breach of customer trust and failed data security and the Company’s stock dropping 11% in one day. Then, on August 31, 2022, the Company disclosed that it was experiencing major challenges with the Auth0 integration and that the Company would reevaluate its growth plans because of the integration concerns.
The Company has been sued in a securities class action lawsuit for failing to disclose material information, violating federal securities laws. Recently, the court presiding over that case denied the Company’s motion to dismiss in part, allowing the case to move forward.
KSF’s investigation is focusing on whether Okta’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws. If you have information that would assist KSF in its investigation, or have been a long-term holder of Okta shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-833-938-0905 or email KSF Managing Partner Lewis Kahn (email@example.com), or fill out the form on this page.