The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Coupang, Inc. (“Coupang” or the “Company”) (NYSE: CPNG) Class A common stock pursuant and/or traceable to the registration statement issued in connection with Coupang’s March 2021 initial public offering (“IPO”). Coupang investors have until October 25, 2022 to file a lead plaintiff motion.
If you are a shareholder who suffered a loss, click here to participate.
In March 2021, Coupang conducted its initial public offering (“IPO”), selling 100 million shares of Class A common stock at $35 per share.
On April 27, 2021, United Press International reported on unsafe working conditions for Coupang’s delivery drivers and employees at Coupang’s fulfillment centers, stating that nine Coupang workers had died over the past year due to an inhumane working environment. The report also alleged that the Company had sued journalists who had written about the Company’s worker deaths.
Then, on June 17, 2021, a fire broke out in Coupang’s Logistic Fulfillment Center in Seoul, killing a firefighter who became trapped in the building. Protestors claimed that the fire resulted from Coupang’s inhumane working conditions. The fire cost Coupang approximately $296 million in lost inventory, property, equipment, and other costs.
Then, on September 20, 2021, a representative from the Korean Fair Trade Commission (“KFTC”) announced that Coupang was participating in, and would be regulated for, search algorithm manipulation that had improperly prioritized its own products over those of third-party sellers.
Then, on March 22, 2022, Korea JoonAng Daily reported that the KFTC had opened another investigation into Coupang regarding claims that the Company had manipulated product reviews for its private-label branded products to make them appear more positive.
Then, on July 13, 2022, The Korea Times published an article reporting that Coupang was also under investigation for falsely advertising the membership benefits of its Rocket WOW membership services.
On July 14, 2022, Coupang Class A common stock closed at $14.25 per share – 59.3% below the IPO price.
The complaint filed alleges that Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Coupang was engaged in improper anti-competitive practices with its suppliers and other third parties in violation of applicable regulations, including: (i) pressuring suppliers to raise prices of products on competing e-commerce platforms in order to ensure Coupang’s prices would be more competitive; (ii) coercing suppliers into purchasing advertisements that would benefit Coupang financially; (iii) forcing suppliers to shoulder all expenses from sales promotions; and (iv) requesting wholesale rebates from suppliers without specifying any terms relating to rebate programs, all of which served to artificially maintain the Company’s lower prices and artificially inflate the Company’s historical revenues and market share; (2) that Coupang had improperly adjusted search algorithms and manipulated product reviews on its marketplace platform in order to prioritize its own private-label branded products over those of other sellers and merchants, to the detriment of consumers, merchants, and suppliers; (3) that, unbeknownst to its Rocket WOW members, Coupang was selling products to non-member customers at lower prices than those offered to its Rocket WOW members; (4) that Coupang subjected its workforce to extreme, unsafe, and unhealthy working conditions; (5) that all of the above illicit practices exposed the Company to a heightened, but undisclosed, risk of reputational and regulatory scrutiny that would harm the Company’s critical relationships with consumers, merchants, suppliers, and the workforce; (6) that Coupang’s lower prices, historical revenues, competitive advantages, and growing market share were the result of systemic, improper, unethical, and/or illegal practices, and, thus, unsustainable; and (7) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
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If you purchased Coupang Class A common stock pursuant and/or traceable to the IPO, you may move the Court no later than October 25, 2022 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Coupang Class A common stock pursuant and/or traceable to the IPO, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to firstname.lastname@example.org, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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The Law Offices of Frank R. Cruz Announces the Filing of a Securities Class Action on Behalf of Coupang, Inc. (CPNG) Investors