Coupang Faces Class Action Lawsuit Alleging Violations After Data Breach
Coupang is facing a class action lawsuit from investors alleging securities law violations following a data breach affecting nearly 34 million customers.Summary
Coupang, South Korea’s largest online retailer, is the subject of an investor class action lawsuit filed in California. The suit alleges the company misled investors regarding its data security practices and failed to promptly disclose a recent data breach, as reported by Reuters on December 22nd. According to the lawsuit, Coupang’s U.S. regulatory filings understated its vulnerability to cyberattacks while exaggerating its security measures.
The data breach, revealed on November 29th, exposed the personal information of approximately 34 million customers, with unauthorized access beginning as early as June through overseas servers. The compromised data included names, email addresses, phone numbers, shipping addresses, and some order histories, but did not include login credentials or payment details. Coupang reported the incident to authorities on November 18th.
In a December 15th SEC filing, Coupang indicated a former employee may have obtained the data and, to their knowledge, had not publicly released it. The former CEO of Coupang Corp. also resigned on December 10th. While the company maintains its operations haven’t been significantly disrupted, it acknowledges potential financial losses from revenue loss, remediation costs, regulatory penalties, and litigation.
(Source：Pymnts)