Shareholders accuse Coupang of regulatory, legal failings in U.S. class action lawsuit
Coupang faces a U.S. class action lawsuit from shareholders alleging delayed disclosure of a significant data leak caused financial harm.Summary
Coupang is embroiled in a U.S. class action lawsuit filed by shareholders who claim the company failed to promptly disclose a substantial data leak, leading to financial losses. The lawsuit, led by Rosen Law Firm, focuses on whether Coupang’s delayed reporting to the Securities and Exchange Commission (SEC) violated U.S. regulations requiring disclosure of material cybersecurity incidents within four business days.
The breach, potentially affecting 33 million accounts, was detected on November 18th but wasn't publicly disclosed until Tuesday, raising questions about a month-long gap. Plaintiffs argue Coupang had inadequate cybersecurity measures, allowing unauthorized access for nearly six months. Coupang’s stock price dropped 18% following news of the breach.
Coupang is expected to defend its actions, potentially arguing the leaked data wasn’t “highly sensitive” under U.S. law. The company has also invested heavily in lobbying efforts in Washington, D.C., spending over $10 million since its IPO, and some speculate the recent postponement of a Korea-U.S. FTA committee meeting may be related to the breach. The case is being viewed as a test of Coupang’s lobbying influence and its potential regulatory exposure.
(Source：Koreajoongangdaily Joins News)