OKTA ALERT

Bragar Eagel & Squire, P.C. Announces that a Class Action Lawsuit Has Been Filed Against Okta, Inc. and Encourages Investors to Contact the Firm

Bragar Eagel & Squire, P.C., a nationally recognized stockholder rights law firm, announces that a class action lawsuit has been filed against Okta, Inc. (“Okta” or the “Company”) (NASDAQ: OKTA) in the United States District Court for the Northern District of California on behalf of all persons and entities who purchased or otherwise acquired Okta securities between March 5, 2021 and March 22, 2022, both dates inclusive (the “Class Period”). Investors have until July 19, 2022 to apply to the Court to be appointed as lead plaintiff in the lawsuit.

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Okta provides identity solutions for enterprises, small and medium-sized businesses, universities, non-profits, and government agencies in the U.S. and internationally. The Company offers a variety of cybersecurity products and services. Following its completed merger with Auth0, Inc., a Delaware corporation (“Auth0”), on May 3, 2021 (the “Merger”), Okta began providing additional Auth0 products related to cybersecurity and login solutions.

Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose 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.

On or around March 21, 2022, hackers known as LAPSUS$ posted screenshots on their Telegram1 channel showing what they claimed was Okta’s internal company environment. Thereafter, on March 22, 2022, the Company’s Chief Executive Officer (“CEO”), Defendant Todd McKinnon (“McKinnon”), posted a statement on his Twitter account, disclosing that, “[i]n late January 2022, Okta detected an attempt to compromise the account of a third party customer support engineer working for one of our subprocessors”; that “[t]he matter was investigated and contained by the subprocessor”; that “[w]e believe the screenshots shared online are connected to this January event”; and that, “[b]ased on our investigation to date, there is no evidence of ongoing malicious activity beyond the activity detected in January.”