SJKP, Daeryun's U.S. Affiliate,
Holds Press Conference in New York
"Focusing on Governance Failures and Disclosure Violations"
A class action lawsuit seeking punitive damages is being pursued in the United States against Coupang, which recently suffered a large-scale personal information leak, targeting not only its Korean subsidiary but also its U.S. headquarters.
SJKP, the U.S. affiliate of Korean law firm Daeryun, held a press conference in Manhattan, New York, on the 8th (local time) and announced that it would officially file a consumer class action lawsuit against Coupang Inc., Coupang's parent company, in the U.S. District Court for the Southern District of New York.
Kim Kukil, Managing Partner of Daeryun, emphasized that Coupang’s headquarters is registered in Delaware and listed on the New York Stock Exchange, stating, "We will use the powerful tools of the U.S. judicial system to uncover the truth behind this incident and ensure that victims receive substantial compensation." Coupang Inc. is the parent company that owns 100% of the shares of Coupang’s Korean subsidiary and was listed on the New York Stock Exchange (NYSE) in March 2021.
On November 29, Coupang revealed that information from approximately 33.7 million customer accounts had been leaked. The leaked data included names, emails, phone numbers, addresses, and some order information.
Kim explained that while lawsuits in Korea focus on consumer compensation, the U.S. lawsuit will have a different character, addressing issues such as governance failures and disclosure violations by a listed company. Currently, about 200 participants in the Korean lawsuit are also involved in the U.S. case.
He added, "The role of Coupang’s headquarters cannot be fully revealed through civil litigation in Korea," and explained that "the U.S. lawsuit will focus on what role the headquarters played in the relationship between the U.S. headquarters and the Korean subsidiary." He further stated that the goal is to file the complaint with the U.S. court within this year, once the recruitment of plaintiffs is complete.
The United States has a punitive damages system, which can significantly increase compensation amounts if a company’s gross negligence is recognized. Kim stated that they would seek punitive damages based on Coupang’s violations of governance and risk management obligations.
In the United States, there have been past cases such as T-Mobile, which leaked the personal information of more than 76.6 million people in 2021 and ended up paying a settlement of 350 million dollars to consumers, as well as committing to invest at least 150 million dollars in enhanced security. Similarly, credit rating agency Equifax agreed to pay up to 700 million dollars in settlements with the Federal Trade Commission (FTC) following a major data breach in 2017.
Daeryun and SJKP are currently recruiting victims for the class action lawsuit through their official website. SJKP, providing guidance for U.S. consumers, stated, "If you have used Coupang-related services such as Coupang Shopping, Coupang Eats, or Coupang Play, and believe your information may have been exposed in the recent data breach, please contact us."
Meanwhile, collective action by Coupang shareholders is also expected to continue. Earlier this month, DJS Law Group, based in New York, announced that it is investigating possible securities law violations by Coupang and is recruiting shareholders who suffered losses due to the data breach. As Coupang Inc. is listed on the New York Stock Exchange, it is subject to U.S. Securities and Exchange Commission (SEC) regulations. According to these regulations, any significant security incident must be disclosed within four business days.
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