What's Happening?
A Korean law firm, Daeryun, is preparing to file a class action lawsuit against Coupang in the United States following a significant data breach that exposed 33.7 million personal records. The lawsuit will
be filed in a U.S. court, where punitive damages are possible, potentially holding Coupang more accountable and securing substantial compensation for victims. Daeryun's local affiliate, SJKP LLP, announced plans to hold a press conference in Manhattan to discuss the lawsuit. The breach has reportedly affected Coupang's stock price on the New York Stock Exchange, leading to shareholder losses. The U.S. Securities and Exchange Commission (SEC) is also investigating whether Coupang properly disclosed the breach. Coupang, Inc., the parent company listed in the U.S., owns 100% of the shares of its Korean subsidiary, with more than 70% of voting rights held by founder Bom Kim.
Why It's Important?
The lawsuit highlights the potential for U.S. legal systems to impose stricter accountability on international companies operating within its jurisdiction. The case could set a precedent for how data breaches are handled, especially concerning punitive damages, which are not available in Korea. This could lead to increased scrutiny and regulatory pressure on companies to enhance their cybersecurity measures. The outcome may influence how multinational corporations manage data privacy and compliance, potentially leading to more robust protections for consumers. Additionally, the case underscores the growing importance of cybersecurity in maintaining investor confidence and protecting shareholder value.
What's Next?
The press conference in Manhattan will likely provide more details on the lawsuit's scope and the plaintiffs involved. If the lawsuit proceeds, it could lead to a lengthy legal battle with significant implications for Coupang's operations and financial standing. The SEC's investigation may result in further regulatory actions or penalties if Coupang is found to have violated disclosure requirements. The case may also prompt other companies to reassess their data protection strategies and insurance coverage to mitigate similar risks. In Korea, there may be calls for legislative changes to strengthen data protection laws and increase penalties for breaches.
