Coupang, South Korea’s Online Retail Giant, Hit with US Securities Class Action Following Data Breach
A recent lawsuit filed in federal court in California alleges that Coupang, along with its CEO and Chairman Bom Kim and Chief Financial Officer Gaurav Anand, misled investors regarding the company’s data security practices. The suit claims that they failed to disclose a significant data breach in a timely manner.
Coupang, recognized as South Korea’s largest online retailer, publicly apologized last month for a breach that compromised personal information due to unauthorized access. Following this incident, Park Dae-jun, the chief executive of Coupang Corp, a subsidiary of the company, resigned earlier this month.
Often referred to as the “Amazon.com of South Korea,” Coupang has committed to enhancing its security measures to prevent future data leaks. Despite these assurances, the company has not yet responded to requests for comments regarding the lawsuit, nor has a lawyer representing the investor who filed the suit on December 18 provided any statements.
Operating on a global scale, Coupang has established offices in California and other U.S. cities. The company holds a dominant position in South Korea’s e-commerce market, offering services such as same-day delivery, video streaming, and food delivery. The recent breach has triggered investigations within South Korea.
According to the lawsuit, Coupang discovered on November 18 that a former employee had retained unauthorized access to internal systems for several months. This breach compromised sensitive customer information, including names, email addresses, delivery addresses, and some order histories. However, the company has stated that payment details and login credentials were not exposed during the incident.
The lawsuit further alleges that Coupang failed to report the breach in accordance with U.S. securities regulations in a timely manner. It claims that the company submitted regulatory filings that downplayed its vulnerability to cyberattacks while exaggerating the effectiveness of its security measures. The complaint seeks damages for investors who purchased Coupang securities between August 6 and December 16.
A recent lawsuit filed in federal court in California alleges that Coupang, along with its CEO and Chairman Bom Kim and Chief Financial Officer Gaurav Anand, misled investors regarding the company’s data security practices. The suit claims that they failed to disclose a significant data breach in a timely manner.
Coupang, recognized as South Korea’s largest online retailer, publicly apologized last month for a breach that compromised personal information due to unauthorized access. Following this incident, Park Dae-jun, the chief executive of Coupang Corp, a subsidiary of the company, resigned earlier this month.
Often referred to as the “Amazon.com of South Korea,” Coupang has committed to enhancing its security measures to prevent future data leaks. Despite these assurances, the company has not yet responded to requests for comments regarding the lawsuit, nor has a lawyer representing the investor who filed the suit on December 18 provided any statements.
Operating on a global scale, Coupang has established offices in California and other U.S. cities. The company holds a dominant position in South Korea’s e-commerce market, offering services such as same-day delivery, video streaming, and food delivery. The recent breach has triggered investigations within South Korea.
According to the lawsuit, Coupang discovered on November 18 that a former employee had retained unauthorized access to internal systems for several months. This breach compromised sensitive customer information, including names, email addresses, delivery addresses, and some order histories. However, the company has stated that payment details and login credentials were not exposed during the incident.
The lawsuit further alleges that Coupang failed to report the breach in accordance with U.S. securities regulations in a timely manner. It claims that the company submitted regulatory filings that downplayed its vulnerability to cyberattacks while exaggerating the effectiveness of its security measures. The complaint seeks damages for investors who purchased Coupang securities between August 6 and December 16.
