Coupang Faces Securities Class Action Over Alleged Data Breach Mismanagement and Executive Departure
Coupang Hit with Securities Class Action Following Data Breach Allegations
E-commerce leader Coupang, Inc. (CPNG) is the target of a securities class action lawsuit, *Barry v. Coupang, Inc., et al.*, filed in the U.S. District Court for the Southern District of New York. The legal action, announced on December 31, 2025, by law firm Hagens Berman, stems from allegations that the company and certain senior executives misled investors regarding the adequacy of its data security measures and the timely disclosure of a massive data breach.
The class action seeks to recover damages for investors who purchased or otherwise acquired Coupang securities between March 25, 2021, and December 31, 2025. This period encompasses the time following Coupang's initial public offering (IPO) and the subsequent events related to the security incident and executive changes.
Allegations Focus on Misleading Statements and Disclosure Failures
The core of the lawsuit centers on claims that Coupang made materially false and misleading statements in its public filings and communications. Specifically, the complaint alleges that the company failed to disclose critical information concerning its data security protocols, which ultimately led to a significant security failure. The lawsuit claims that the company's internal controls were deficient, exposing customer and operational data to unauthorized access.
The plaintiffs argue that Coupang's failure to timely and accurately disclose the full extent and impact of the data breach artificially inflated the price of CPNG stock. When the true nature of the security lapse and its potential financial and reputational consequences became known, the stock price suffered a decline, causing losses for investors.
Executive Departure Cited as Contributing Factor
Adding to the investor concerns is the abrupt departure of a key executive. The lawsuit explicitly cites this executive change as a factor contributing to the overall narrative of mismanagement and instability within the company. While the specific role of the departing executive is not detailed in the alert, their exit is presented as evidence of internal turmoil coinciding with the data security crisis.
“Coupang and certain executives made materially false and misleading statements regarding the company's data security protocols and timely disclosure practices following a massive data breach,” according to the investor alert issued by Hagens Berman.
Market Impact and Investor Recourse
The filing of a securities class action typically signals heightened risk and potential financial liability for the defendant company, often leading to increased volatility in the stock price. For investors who suffered losses during the class period, the lawsuit provides a mechanism to seek compensation. The deadline for investors to move the court to be appointed as lead plaintiff in the case, *Barry v. Coupang, Inc., et al.*, is February 28, 2026.
The outcome of this litigation will likely hinge on the evidence regarding the company's knowledge of the security vulnerabilities, the timing of its public disclosures, and the materiality of the alleged misstatements. The case serves as a stark reminder of the increasing scrutiny placed on technology and e-commerce companies regarding their cybersecurity resilience and corporate governance, particularly following high-profile security incidents.
