SAN FRANCISCO (Legal Newsline) - Cybersecurity company Okta faces a class action lawsuit over a drop in the value of its stock from the law firm Pomerantz and its client the City of Miami Fire Fighters' and Police Officers' Retirement Trust.
The case, filed May 20 in California federal court, hopes to compensate all who bought stock in the company between March 5, 2021, and March 22, 2022. The company - which sells cybersecurity products and services to small and medium-sized businesses, universities, nonprofits and government agencies - merged with Auth0 two days before that class period began.
The complaint says the company had inadequate safety measures during the class period, which led to hackers known as LAPSUS$ posting screenshots of Okta's internal company environment.
The company on March 22 declared 2.5% of customers had potentially been impacted. News coverage noted the company had more than 15,000 customers at the time.
Raymond James downgraded the company from "strong buy" to "market perform," citing concerns over the security incident. Its stock price fell $17.88 per share - nearly 11% - to $148.55 after the downgrade.
Several other firms have filed class actions against Okta, whose stock price is now all the way down to $81 per share, as of presstime. Fifteen months ago, before the class period began, it traded at $292.