NEW YORK, NY / ACCESSWIRE / October 5, 2022 / Bernstein Liebhard LLP, a nationally acclaimed investor rights law firm, reminds investors of the deadline to file a lead plaintiff motion in a securities class action lawsuit that has been filed on behalf of investors who purchased or acquired the Class A common stock of Coupang, Inc. (“Coupang” or the “Company”) (NYSE:CPNG) pursuant and/or traceable to the registration statement issued in connection with Coupang’s March 2021 initial public offering (“IPO”). The lawsuit was filed in the United States District Court for the Southern District of New York and alleges violations of the Securities Exchange Act of 1933.
Founded in 2010, Coupang made a name for itself by commercializing South Korean quick delivery services through aggressive investment in infrastructure technology and distribution centers. Coupang has approximately 100 fulfillment and logistics centers in over 30 cities, encompassing over 40 million square feet. Coupang offers hundreds of millions of products, sourced from its owned-inventory and private-label branded products, third-party selections, and over 200,000 merchants for quick delivery. Coupang also provides a “Rocket WOW” customer loyalty program to offer additional benefits to its most engaged and frequent customers.
On February 12, 2021, Coupang filed a registration statement for the IPO on Form S-1, which was declared effective on March 10, 2021 (the “Registration Statement”). On March 11, 2021, Coupang filed a prospectus for the IPO on Form 424B4, which incorporated and formed part of the Registration Statement. Pursuant to the Registration Statement, Coupang sold 100 million Coupang Class A common stock at $35 per share, for total gross proceeds of $3.5 billion.
Plaintiff alleges that the Registration Statement failed to disclose the following adverse facts that existed at the time of the IPO: (a) Coupang was engaged in improper anti-competitive practices with its suppliers and other third parties; (b) Coupang had improperly adjusted search algorithms and manipulated product reviews to prioritize its own private-label branded products over those of other sellers and merchants, to the detriment of consumers, merchants, and suppliers; (c) Coupang was selling products to non-member customers at lower prices than those offered to its Rocket WOW members; (d) Coupang subjected its workforce to unhealthy working conditions; and (e) Coupang’s lower prices, historical revenues, competitive advantages, and market share were the result of systemic, improper, unethical, and/or illegal practices, and, thus, unsustainable.
On or around April 27, 2021, less than two months after the IPO, United Press International reported on systemic, unsafe working conditions for Coupang’s delivery drivers and employees.
On June 17, 2021, a deadly fire broke out in the basement of Coupang’s Deokpyeong Logistics Fulfillment Center, located south of Seoul. Aside from consumer criticism, the fire cost Coupang approximately $296 million in lost inventory, property, equipment, and other costs.
On September 10, 2021, 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. This was a significant expansion of the regulator’s prior findings about Coupang.
On March 22, 2022, Korea JoonAng Daily reported that the KFTC was now reportedly examining claims that Coupang had manipulated product reviews for its private-label branded products to make them appear more positive.
Finally, on July 13, 2022, The Korea Times issued an article entitled “Coupang, Naver Hit By Antitrust Allegations,” which reported that Coupang was now also under investigation by the KFTC for falsely advertising the membership benefits of its Rocket WOW membership services. On this news, Coupang’s stock fell over 34%, to close at $13.46 per share on June 14, 2022.
If you wish to serve as lead plaintiff, you must move the Court no later than October 25, 2022. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery does not require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Coupang Class A common stock, and/or would like to discuss your legal rights and options please visit Coupang, Inc. Shareholder Class Action Lawsuit or contact Peter Allocco at (212) 951-2030 or [email protected].
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for ten consecutive years.
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