Coupang Faces Class-Action Lawsuit in the US Over Massive Data Breach
A class-action lawsuit has been filed against South Korea’s leading e-commerce firm, Coupang, in a US federal court following a major data breach that exposed the personal information of over 33 million users. The lawsuit accuses the company and its executives of misleading investors and failing to disclose the breach in a timely manner.
The class-action lawsuit, filed in a California federal court, accuses Coupang, its CEO Bom Kim, and its CFO Gaurav Anand of violating securities laws. The investors who filed the lawsuit claim that Coupang misled them about the company’s cybersecurity measures and failed to disclose the breach in accordance with US securities regulations.
Coupang, known as South Korea’s Amazon, admitted to the data breach and expressed regret over the unauthorized access to customer data. As a result of the incident, Coupang’s subsidiary Coupang Corp’s CEO Park Dae-jun resigned earlier this month. The company has pledged to enhance its security measures to prevent future data breaches.
What Happened at Coupang?
The data breach at Coupang was discovered on November 18 when it was realized that a former employee had illicitly retained access to the company’s internal systems for months. During this period, personal information of over 33 million customers—including names, email addresses, delivery addresses, and some order histories—was exposed. Fortunately, Coupang confirmed that sensitive data such as payment details and login credentials were not part of the breach.
The lawsuit also emphasizes that Cou pang failed to disclose the breach in a timely manner. The plaintiffs allege that the company’s regulatory filings in the US downplayed the company’s vulnerability to cyberattacks and overstated the effectiveness of its security measures.
Data Breach Investigations Triggered
As of now, Cou pang and the lawyers representing the investors who filed the lawsuit have not made any public comments on the case. The company reiterated its commitment to strengthening its cybersecurity infrastructure and preventing similar incidents in the future.
Cou pang, a global company with offices in California and other US cities, is a market leader in South Korea’s e-commerce sector, offering services such as same-day delivery, video streaming, and food delivery. The data breach has also triggered investigations into the company’s practices in South Korea.
Seeking Compensation for Investors
The plaintiffs are seeking damages for investors who purchased Cou pang securities between August 6 and December 16. The lawsuit alleges that the company’s actions—or inactions—directly impacted the stock value during this period. As investigations continue and the case progresses in court, the outcome of this lawsuit is expected to have significant effects on Cou pang and its position in both the US and South Korean markets.
Coupang Faces the Largest Data Breach in Its History, Nearly 34 Million Users Affected