Victims of Coupang information leak file class action lawsuit in U.S.… Claim for punitive damages

Plaintiff: “The essence of the Coupang incident was the leakage of information on over 33 million members.”

Consumers affected by Coupang, where a large-scale personal information leak occurred, filed a class action lawsuit against Coupang's U.S. parent company on the 6th (local time), seeking punitive damages in a U.S. court.

According to the U.S. District Court for the Eastern District of New York, Coupang information leak victims, including U.S. citizens Mr. Lee and Mr. Park, as representative plaintiffs, filed a lawsuit today against Coupang Inc., Coupang's parent company, and Chairman of the Board of Directors Kim Beom-seok, seeking compensation for damages.

Coupang Inc is the parent company that owns 100% of Coupang Korea Corporation.

In a complaint submitted to the court on this day, Mr. Lee and others argued that Coupang Inc. was negligent in violating its personal information protection obligations and that this amounted to a violation of an implied contract.

They also claimed that they made unfair profits by failing to take appropriate security measures and violated New York State law prohibiting deceptive sales practices.

Tal Hirschberg, an attorney at law firm SJKP who represented the lawsuit, said at a press conference held after filing the complaint that day, "Coupang Inc was established under U.S. commercial law and has obligations to all who use Coupang, including Koreans as well as U.S. citizens."

He went on to explain, “I think using the U.S. courts will help us obtain better information about what wrongdoing (Coupang) did.”

Kim Kuk-il, CEO of Daeryun Law Firm, a Korean partner of SJKP, said at a press conference that day, "The essence of the Coupang incident is that the information of more than 33 million members was leaked, and responding to this problem must be prioritized. I am confident that the class action lawsuit filed today is the most wanted and essential lawsuit by the affected members."
 

The complaint did not specify the specific number of participants in the lawsuit. Attorney Hershberg explained that to date, more than 7,000 victims of information leaks have contacted us about participating in the class action lawsuit.

The Coupang lawsuit in the United States will proceed separately from the lawsuit filed in the Korean court.

Additionally, it is expected to proceed separately from the shareholder class action lawsuit previously filed in the U.S. District Court for the Northern District of California.

The United States has a punitive damages system, so large amounts of compensation are often set for companies with serious negligence.

In fact, T-Mobile, one of the three major U.S. mobile carriers, caused a stir in 2021 when the personal information of more than 76.6 million current and potential customers was leaked.

Consumers filed a lawsuit in court, and T-Mobile spent $350 million (about 510 billion won) in settlement. Separately, the company promised the court that it would invest at least $150 million in strengthening its in-house security system.

pan@yna.co.kr

Lee Ji-heon (pan@yna.co.kr)

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