Palantir Technologies Inc.’s stock dropped 7.5% on Friday after a report claimed a battlefield communications system it worked on was flawed. The Army expressed concerns over Anduril’s NGC2 system, which includes Palantir and Microsoft. Palantir denied any vulnerabilities in their platform.

The Army’s chief information officer stated that issues with the NGC2 system were identified and fixed promptly. Palantir’s stock suffered its biggest decline since August and was the worst S&P 500 performer for the day. Tech companies slid following White House threats of government layoffs.

Lieutenant General Jeth Rey emphasized the importance of addressing security vulnerabilities in integrating advanced technology. An Army memo highlighted vulnerabilities in the communications networks, which were later mitigated. Anduril stated the problems had been resolved and the system was progressing through iterative development.

Army CIO Leo Garciga defended the memo, stating it was part of the process of modernizing military technology. He emphasized the need to improve the speed of capability delivery to soldiers. The Army aims to provide new tools more rapidly than in the past to keep up with evolving warfare tactics.

Read more at Yahoo Finance: Palantir Rebuts Report on Security Flaws After Stock Falls