A class-action lawsuit seeking punitive damages is being launched against Coupang’s U.S. headquarters following a massive data breach.
On Monday, the law firm Dae Ryun and its U.S. partner SJKP held a press conference at their Manhattan office, announcing plans to file a consumer class-action lawsuit against Coupang’s parent company, Coupang Inc.
Dae Ryun’s Chief Executive Officer (CEO), Kim Guk-il, stated that Coupang’s headquarters is registered in Delaware and listed on the New York Stock Exchange. It will use the robust U.S. judicial system to uncover the truth and ensure substantial compensation for victims.
He explained that in Korea, proving harm is difficult when companies conceal information. Even Kakao’s record fine of 15.1 billion KRW (about 10.3 million USD) is insignificant to Coupang, which has annual revenues exceeding 30 trillion KRW (about 20.4 billion USD). In contrast, the U.S. punitive damages system can result in much larger compensation.
Kim emphasized that Equifax agreed to pay 700 million USD after a breach affecting 30 million people, and Yahoo suffered a 480 billion KRW (about 367 million USD) reduction in sale price. Based on these precedents, it’ll seek punitive damages for significant negligence and hold Coupang accountable for violating corporate governance and risk management obligations.
Coupang Inc., founded by U.S. citizen Kim Beom-seok in 2010, is the parent company owning 100% of Coupang’s Korean subsidiary. It went public on the New York Stock Exchange (NYSE) in March 2021.
This U.S. lawsuit will proceed independently from ongoing legal actions in Korea.
SJKP announced plans to file a consumer class-action lawsuit against Coupang Inc. in the U.S. District Court for the Southern District of New York.
They explained that while Korea focuses on consumer compensation, the U.S. lawsuit will address corporate governance failures and disclosure violations of a public company. Plaintiffs will be Coupang users who suffered actual harm, contesting consumer rights violations due to the data breach.
SJKP addressed concerns about investigative difficulties, stating that if the U.S. headquarters has substantial access to its Korean subsidiary’s systems and data, U.S. courts can compel submission of relevant materials, regardless of server location.
They added that this approach has secured key internal documents in numerous multinational corporate cases. It’ll use these precedents to uncover when management became aware of hacking signs and why they neglected security investments.
SJKP noted the lawsuit will proceed on a contingency fee basis, with SJKP and Dae Ryun fronting costs. Victims won’t bear upfront expenses or fees in case of a loss.
The legal team includes attorney Son Dong-hoo, experienced in U.S. investment and corporate law, along with attorneys Kyle Courtnall and Tal Hirshberg.
Courtnall, a former Virginia prosecutor, is licensed in D.C. and Virginia with finance experience at Morgan Stanley. Hirshberg, licensed in New York, has extensive federal case experience in Southern and Eastern District courts.
The U.S. employs a punitive damages system imposing substantial compensation for significant negligence.
T-Mobile agreed to a 350 million USD settlement for a 2021 breach affecting 76.6 million customers.
In 2017, Equifax settled for up to 700 million USD after a breach impacting 143 million people’s credit information.
Last month, Coupang disclosed a data breach affecting approximately 33.7 million customer accounts, compromising names, phone numbers, emails, addresses, and some order details.
