#South Korea #Seoul #Hagens Berman #Coupang #CPNG

Coupang, Inc. Faces Serious Legal Challenges

Coupang, Inc., the South Korean e-commerce giant, is currently embroiled in a significant securities class action lawsuit following a substantial data breach that raised serious questions about the company's disclosure practices and cybersecurity measures. The lawsuit is being led by the national shareholder rights firm Hagens Berman, which has alerted investors about the scope and ramifications of the legal proceedings.

The center of this legal battle revolves around allegations that Coupang failed to adequately inform its shareholders about a data breach that allowed a former employee to access a considerable volume of sensitive customer data. The class action has expanded to cover a Class Period beginning on May 7, 2025, and ending on December 16, 2025, incorporating a wide swath of investors who bought Coupang securities during this timeframe.

Details of the Allegations

According to court documents, the complaint cites multiple instances where Coupang allegedly misrepresented the robustness of its disclosure controls and cybersecurity protocols. On May 6, 2025, the company publicly assured investors through its quarterly report that there had been no material changes in risk factors impacting its business or financial stability. Furthermore, Coupang claimed it had effective measures to protect users' personal data from being compromised during processing, as stated in a privacy notice issued on June 30, 2025.

However, significant doubts began to surface when on November 29, 2025, the company revealed a breach initially thought to involve around 4,500 customer accounts. A subsequent investigation disclosed that approximately 33.7 million accounts in South Korea had been affected, prompting serious concerns about the company's prior assurances.

In the legal realm, the lawsuit raises critical questions about the management's competence and accountability, especially in informing shareholders post-breach. Hagens Berman partner Reed Kathrein, who is spearheading the investigation, emphasized the need for clarity on why it took the company several weeks to disclose such a substantial breach to investors.

Financial Impact and Response

The fallout from these revelations has been severe, with Coupang's market capitalization plummeting by over $8 billion between the time of the initial breach news and the lawsuit's filing. Additionally, the implications of the lawsuit threaten to extend beyond financial losses, as the company announced a massive 1.685 trillion won (over $1 billion) compensation plan aimed at restoring customer trust post-breach.

As the situation unfolds, investors who feel aggrieved from losses linked to Coupang's securities are strongly encouraged to contact Hagens Berman for potential inclusion in the class action. The deadline for lead plaintiffs is set for February 17, 2026.

Implications for Future Cybersecurity Practices

This situation not only highlights the vulnerabilities within Coupang’s cybersecurity framework but also serves as a cautionary tale for the broader corporate landscape on the importance of stakeholder transparency following data breaches. The legal ramifications could lead to tighter regulations and enhanced scrutiny on tech firms concerning their data protection policies and shareholder communications.

In conclusion, as Coupang navigates this turbulent period, the developments in this case will be closely monitored by investors, industry analysts, and regulatory bodies alike, marking a pivotal moment for the company’s future and operational integrity in the ever-evolving e-commerce sector.