Palantir Rebuts Report on Security Flaws as Stock Sinks

Palantir Technologies Inc.’s stock fell 7.5% following a report that a battlefield communications system it developed with defense tech firm Anduril Industries Inc. was seriously flawed — a claim both companies said was outdated and inaccurate, Lizette Chapman and Felice Maranz reported for Bloomberg News.

The share drop marked Palantir’s steepest decline since August. (Photo: Palantir X)

The report, published Friday by Reuters, focused on a September Army memo expressing concerns about Anduril’s NGC2 prototype system — which stands for Next Generation Command and Control — and involves subcontractors Palantir and Microsoft Corp.

A Palantir representative said that “no vulnerabilities were found in the Palantir platform.”

In a statement, the Army’s chief information officer said the problems with the NGC2 system were “identified early and mitigated immediately,” adding that the issues were resolved in a controlled testing environment.

The share drop marked Palantir’s steepest decline since August, making it the worst performer on the S&P 500 for that day.

The decline followed a remarkable rally for the company, whose shares have gained more than 2,000% over the past three years. Other tech stocks also slipped following threats from the White House to lay off government workers.