Coupang faces U.S. class action hearing over data breach jurisdiction

The first preliminary hearing for a U.S. class action lawsuit against Coupang regarding a massive personal information leak took place in the U.S. District Court for the Eastern District of New York. The central dispute involves whether the court has jurisdiction over the case.

Coupang's legal representatives argued for dismissal, claiming the incident occurred within its South Korean platform and that the U.S.-based parent company, Coupang Inc, is a separate legal entity from the Korean subsidiary. They characterized the litigation as a waste of time and resources given the incident's local nature in Korea.

Conversely, plaintiffs—represented by the Korean law firm Daeryun and U.S. partner firm SJKP—contended that jurisdiction is appropriate because Coupang Inc is a U.S. corporation listed on the New York Stock Exchange and its leadership influences the Korean subsidiary. They also noted that the parent company reported the breach to the U.S. Securities and Exchange Commission (SEC).

The lawsuit seeks $5 million in damages against Coupang and its chairman, Bom Kim, following a breach in November last year that exposed the names, contact information, and delivery addresses of approximately 33.7 million users. Judge Anne M. Donnelly has requested additional written submissions by next month to determine the next steps in the proceedings.