Coupang Faces Investor Lawsuit Over Massive Data Breach

South Korean e-commerce giant Coupang is facing a class action lawsuit in the U.S. over a cybersecurity breach that exposed data of more than 33 million customers. The lawsuit alleges that Coupang misled investors about its data security practices and failed to report the breach timely under U.S. securities rules.

Coupang, South Korea's leading online retailer, is embroiled in a class action lawsuit in the United States. Filed in California's federal court, the suit accuses Coupang of securities law violations following a cybersecurity breach impacting over 33 million customers.

The legal action claims that Coupang, alongside its CEO Bom Kim and CFO Gaurav Anand, misrepresented the company's data security standards and failed to disclose the breach in an appropriately swift manner. As a result, investors accuse Coupang of neglecting their fiduciary duties.

In November, Coupang reported discovering unauthorized access by a former employee, compromising customer information such as names and addresses. While Coupang assured that payment details remained secure, it acknowledged the incident sparked investigations in South Korea and vows to enhance cyber defenses to regain trust.

(With inputs from agencies.)