In re Okta, Inc. Securities Litigation

Labaton Keller Sucharow is class counsel in a securities class action lawsuit against Okta, Inc. (“Okta” or the “Company”) and certain of its executives.  A $60 million settlement was reached that resolves claims on behalf of all persons or entities purchased or otherwise acquired the publicly traded Class A common stock of Okta during the period from March 3,2022 through August 31, 2022, inclusive (the “Class Period”).

Okta provides identity and access management (“IAM”)software that helps companies secure user authentication in applications, and developers build identity controls within applications, website web services, and devices.  In May 2021, Okta acquired Auth0, Inc. (“Auth0”) which provided customer identity and access management (“CIAM”) software, as opposed the IAM software that Okta primarily provided for an employer’s workforce.  As alleged, soon after the close of the acquisition, Okta began to experience severe problems with the integration of Auth0.  In January 2022, Okta experienced a data security incident.  Lead Plaintiff alleged that, during the Class Period, Defendants failed to disclose the severe problems with the integration of Auth0.  Lead Plaintiff also alleged that Defendants failed to disclose the January 2022 Incident for two months and then failed to disclose that the Company had lost sales as a result of the January 2022 Incident.  Lead Plaintiff alleges that the failures to disclose violated Sections 10(b) and 20(a) of the Securities and Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5promulgated thereunder.

In October 2022, Lead Plaintiff filed the operative Amended Class Action Complaint for Violations of the Federal Securities Laws (the “Complaint”), which Defendants opposed. In March 2023, the Court entered its Opinion and Order granting in part and denying in part Defendants’ motion to dismiss the Complaint.  In August 2023, Lead Plaintiff filed a class certification motion and the Parties engaged in discovery related to Lead Plaintiff’s motion. In November 2023, Plaintiffs filed a renewed motion for class certification, which added NCRS as an additional named plaintiff and proposed class representative.  The Court granted Plaintiffs’ renewed class certification motion, appointing Plaintiffs as Class Representatives, certifying a class of investors who purchased or otherwise acquired the publicly traded Class A Common stock of Okta during the period of March 3, 2022 through August 31, 2022, inclusive, and appointing Labaton as Class Counsel.

The case is In re Okta, Inc. Securities Litigation, Case No. 3:22-cv-02990. The Action is assigned to the Honorable Susan Illston.  Labaton Keller Sucharow represents Nebraska Investment Council and North Carolina Retirement Systems.  The Court in charge of the case is the United States District Court for the Northern District of California.

Submit Claim Form

If you purchased or otherwise acquired the publicly traded Class A common stock of Okta, Inc. during the period from March 3, 2022 through August 31, 2022, inclusive (the “Class Period”), and were damaged thereby, you may be entitled to a payment from a class action settlement.  To be eligible for a payment, you must submit a Claim Form to the Claims Administrator by October 29, 2024.

Settlement Hearing

A Settlement Hearing will be held on November 8, 2024 at10:00 a.m. (Pacific), before the Honorable Susan Illston, United States District Court Judge for the Northern District of California, Phillip Burton Federal Building & United States Courthouse, 450 Golden Gate Avenue, San Francisco, CA 94102, in Courtroom 1 – 17th Floor, by Zoom webinar. 

If you have questions about the Settlement, please contact Labaton Keller Sucharow at settlementquestions@labaton.com; 1-888-219-6877; or contact the Claims Administrator, 888-622-9621. Additional information about the Settlement can also be found at www.oktasecuritieslitigation.com.