Pomerantz Appointed Lead Counsel in Coupang Securities Litigation

On March 21, 2023, U.S. District Judge Vernon S. Broderick, of the Southern District of New York, appointed Pomerantz LLP as Lead Counsel on behalf of the New York City Public Pension Funds – the Lead Plaintiff, and the class, in Choi v. Coupang, Inc., 22-cv-7309 (S.D.N.Y.). This securities class action alleges that Coupang, Inc. (“Coupang” or the “Company”) misled investors by engaging in improper anticompetitive practices, manipulating the search algorithms, product reviews and pricing in its marketplace platform, and subjecting its workforce to extreme, unsafe, and unhealthy working conditions.

Coupang is one of the largest e-commerce companies in Asia, often referred to as the Amazon.com of South Korea. The Company’s Rocket Wow membership subscribers can make direct purchases of goods and services online and via the Company's mobile application. In March 2021, Coupang issued its IPO, raising over $3 billion in gross proceeds.

Allegations against Coupang include that: (i) the Company was involved in a variety of improper anticompetitive practices with suppliers and other third parties; (ii) Coupang adjusted search algorithms and manipulated product reviews to prioritize its own private label branded products; (iii) the Company sold products to non-members at lower prices than those offered to its members; (iv) Coupang failed to disclose its participation in illegal practices and labor practices at factories in its supply chain; and (v) as a result, the Company was subject to a heightened risk of regulatory scrutiny that could harm its critical relationships with consumers, merchants, suppliers and its workforce.

The truth began to emerge on April 27, 2021, when United Press International reported on the Coupang’s dangerous labor practices, which had led to the deaths of nine Company workers in the past year.

Then, on June 17, 2021, a fire broke out in Coupang’s fulfillment center, leading to the death of one firefighter as well as intensified scrutiny regarding the Company’s inhumane working conditions.

Between September 10, 2021, and March 22, 2022, the Korean Fair Trade Commission announced multiple investigations into Coupang for its participation in anticompetitive private-label business practices, as well as algorithm manipulation which improperly prioritized its products over those of third-party sellers.

Since the Company’s March 2021 IPO, Coupang’s share price has fallen approximately 53% from its offering price.