According to the U.S. District Court for the Northern District of California on Friday, Coupang shareholder Joseph Berry filed a class action suit against the company, its Executive Chairman Bom Kim, and Chief Financial Officer Gaurav Anand.
In the complaint, plaintiffs' attorney Lawrence Rosen alleged that Coupang made "false or misleading public statements, or failed to make timely disclosures," after experiencing what he described as the largest data breach in South Korean history, causing investors to suffer losses.
The lawsuit claims that inadequate cybersecurity protocols at Coupang allowed a former employee to access sensitive customer information for approximately six months without detection, significantly increasing the company's exposure to regulatory scrutiny and legal risks.
The complaint further alleges that despite being aware of the data breach, Coupang failed to file required reports with the U.S. Securities and Exchange Commission, rendering the company's periodic filings materially false.
The shareholder lawsuit is separate from consumer class actions seeking damages over the data breach itself, and centers on alleged violations of U.S. federal securities laws. Several domestic and international law firms are reportedly preparing additional class actions in U.S. courts, including claims for punitive damages, and are in the process of recruiting plaintiffs.
Coupang's share price declined following reports of the data breach, falling about 18 percent from $28.16 on Nov. 28 to $23.20 on Dec. 19.
Separately, the U.S. Senate showed that Coupang spent a total of $10.75 million on lobbying activities targeting the U.S. Congress, the Department of Commerce, the Trade Representative and the White House from August 2021 through the third quarter of this year.
Meanwhile, Coupang also drew criticism after sending only two foreign executives who do not speak Korean to a parliamentary hearing on Dec. 17, prompting objections from both ruling and opposition lawmakers. The executives were criticized for offering perfunctory responses and failing to directly address lawmakers' questions.
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