Coupang Faces Class Action Lawsuit Amid Data Breach Fallout
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 14h ago
0mins
Source: PRnewswire
- Class Action Initiated: Pomerantz LLP has filed a class action lawsuit against Coupang, alleging securities fraud by the company and its executives, with investors needing to apply as Lead Plaintiff by February 17, 2026, indicating escalating legal risks.
- Data Breach Impact: Coupang acknowledged a breach affecting 33.7 million customer accounts on November 30, 2025, resulting in a 5.36% stock price drop on December 1, 2025, reflecting a decline in public trust and potential legal liabilities.
- Executive Resignation: Following the data breach, Coupang's CEO resigned on December 10, 2025, leading to a further 3.2% decline in stock price, highlighting severe challenges to the company's governance structure and potential impacts on future management stability.
- Regulatory Scrutiny Intensifies: Coupang disclosed in an SEC filing that a former employee may have accessed sensitive information of up to 33 million customers, causing a 2.03% stock price drop on December 17, 2025, underscoring the regulatory pressures and further erosion of market confidence.
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Analyst Views on CPNG
Wall Street analysts forecast CPNG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CPNG is 33.83 USD with a low forecast of 22.00 USD and a high forecast of 40.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
4 Buy
2 Hold
0 Sell
Moderate Buy
Current: 20.330
Low
22.00
Averages
33.83
High
40.00
Current: 20.330
Low
22.00
Averages
33.83
High
40.00
About CPNG
Coupang, Inc. is a technology company that provides retail, restaurant delivery, video streaming, and fintech services to customers around the world under brands, such as Coupang, Coupang Eats, Coupang Play, Farfetch, and Rocket Now. Through its AI cloud computing service as Coupang Intelligent Cloud (CIC), it enhances its services and operations and provides GPU-as-a-Service (GPUaaS), including to external parties. Its Product Commerce segment includes its core Korean retail (owned inventory) and marketplace offerings (third-party merchants) and Rocket Fresh, its fresh grocery offering, as well as advertising products associated with these offerings. Its Developing Offerings include Coupang Eats, its restaurant ordering and delivery service in Korea, Coupang Play, an online content streaming service in Korea, fintech, its retail operations in Taiwan, as well as advertising products associated with these offerings, and also include Farfetch, its global luxury fashion marketplace.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Coupang Faces Class Action Lawsuit Over Alleged Securities Fraud
- Lawsuit Background: Levi & Korsinsky LLP has notified investors that Coupang, Inc. is facing a class action lawsuit aimed at recovering losses for investors affected by alleged securities fraud between May 7 and December 16, 2025.
- Data Breach Allegations: The lawsuit claims that Coupang had inadequate cybersecurity protocols, allowing a former employee to access sensitive customer information for nearly six months undetected, thereby exposing the company to heightened regulatory and legal scrutiny.
- Disclosure Failures: When the company became aware of the data breach, it failed to report it in a timely manner as required by SEC regulations, resulting in materially false and misleading public statements throughout the relevant period.
- Investor Rights Protection: Affected investors have until February 17, 2026, to request to be appointed as lead plaintiff, with participation in the lawsuit at no cost, highlighting the firm's commitment to protecting investor rights.
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Coupang Faces Lawsuit Over Data Breach
- Data Breach Incident: Coupang is accused of failing to detect a data breach affecting 33.7 million accounts for nearly six months, resulting in over $8 billion in market value loss, highlighting severe deficiencies in its cybersecurity controls.
- Compensation Plan: The company has initiated a compensation plan of up to 1.685 trillion won (approximately $1.2 billion) to restore customer trust, reflecting urgent needs in crisis management and financial strain.
- Executive Resignation: The resignation of CEO Park Dae-joon due to the data breach signifies a major shift in the company's governance structure, which may impact future strategic decisions and investor confidence.
- Regulatory Investigation: Coupang has acknowledged that Korean regulators are investigating the incident, indicating challenges in compliance and transparency that could lead to stricter regulatory requirements and potential legal repercussions.
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