More US law firms begin reviewing Coupang after data leak

A gigantic banner bearing the name of Korean e-commerce giant Coupang is displayed on the building of the New York Stock Exchange on March 11, 2021, to mark its debut on the U.S. stock market. Korea Times file

SEATTLE — More U.S. law firms are moving to scrutinize Coupang as the fallout from the company’s massive data leak continues to widen, adding fresh pressure on the e-commerce giant and drawing new attention from investor groups.

In the past week, at least three additional firms have issued public notices announcing investigations into whether Coupang Inc. may have violated federal securities laws. Each notice encourages shareholders to reach out as the firms examine whether recent disclosures, including those addressing the breach and related leadership changes, contributed to investor losses.

The firms have not announced formal filings, but their notices indicate that preliminary reviews are accelerating as investor interest grows.

New York-based Rosen Law Firm urged Coupang investors to inquire about a potential claim, saying it is assessing whether the company provided misleading information to the market. Bronstein, Gewirtz & Grossman, LLC, also based in New York, issued a similar alert, asking shareholders to contact the firm as it evaluates whether recent disclosures affected the stock. Kaplan Fox & Kilsheimer LLP opened an investigation of its own, seeking information from investors as it reviews possible claims.

The firm points to a series of disclosures that coincided with sharp movements in Coupang’s share price. According to Kaplan Fox, investors learned in late November that Coupang had reported a data incident affecting thousands of customers, sending the stock down about 3 percent. Days later, the company confirmed the breach was far larger than initially believed, affecting tens of millions of accounts.

Kaplan Fox noted that Coupang told authorities that “unauthorized access to delivery-related personal information for the affected accounts appears to have been made through overseas servers since June 24.” The next trading day, the stock fell more than 5 percent.

The firm added that a separate report in early December regarding the head of Coupang’s Korean operations resigning in connection with the fallout pushed shares lower again, by more than 3 percent.

The rise in inquiry notices underscores how quickly plaintiff firms have turned their attention to Coupang after the breach, which exposed personal data belonging to nearly 34 million users and set off a series of consumer-focused legal actions in Korea.

For investors, the increased interest in the U.S. raises questions about the company’s governance and transparency following recent stock volatility and senior leadership changes.

While the legal landscape remains fluid, the growing number of investigations suggests that market scrutiny of Coupang is likely to intensify in the weeks ahead.