Core Viewpoint - A securities fraud class action lawsuit has been filed against Coupang, Inc. and certain executive officers, alleging misleading statements and failure to disclose material adverse facts regarding the company's cybersecurity practices and the resulting risks to customer data [1][6]. Group 1: Lawsuit Details - The class action lawsuit was filed in the United States District Court for the Western District of Washington, expanding the class period to include all investors who purchased Coupang common stock from May 7, 2025, to December 16, 2025 [1][2]. - The lawsuit is titled Hakrae Lee, et al. v. Coupang, Inc., et al., and asserts claims under the Securities Exchange Act of 1934 [1]. Group 2: Company Overview - Coupang, based in Seattle, Washington, operates as a technology and commerce company, primarily through two segments: Product Commerce and Developing Offerings [4]. - The Product Commerce segment accounted for 88% of Coupang's total revenue in 2024, mainly through its South Korea-based subsidiary [4]. Group 3: Cybersecurity Concerns - The class action alleges that Coupang failed to maintain adequate cybersecurity measures, leading to significant risks of data breaches and unauthorized access to sensitive customer information [6]. - It was revealed that a security breach had already occurred in June 2025, which was not disclosed to investors [6]. Group 4: Impact of the Breach - On November 29, 2025, Coupang disclosed a cybersecurity incident affecting approximately 33.7 million customer accounts, resulting in a stock price drop of about 5.36% [7]. - Following the resignation of CEO Park Dae-joon on December 10, 2025, due to the data leak, Coupang's stock fell by approximately 3.2% [8]. - The full extent of the breach was acknowledged on December 16, 2025, leading to a further decline in stock price by about 2% [9].

Core Viewpoint - Investors are advised to wait at least a year before investing in new IPOs due to their volatility and overvaluation during the transition from private to public markets [1] Company Overview - Coupang is a leading e-commerce company in South Korea, accounting for approximately 25% of the country's e-commerce market [5] - The company went public at around $50 per share in 2021 but saw its share price drop to $8 within 18 months, currently trading at about half of its IPO price [2] Growth and Market Position - Coupang has doubled its revenue over the past four years and has established itself as a cash-generating entity [2] - The company aims to provide best-in-class customer service, leveraging its first-mover advantage in the South Korean market [5] Customer Satisfaction and Services - Coupang has the highest customer satisfaction score among its peers in South Korea, according to the National Customer Satisfaction Index [8] - The company offers a wide range of services, including free grocery delivery, restaurant delivery, streaming media, and a membership program for under $6 a month [8][9] Logistics and Operational Efficiency - Coupang's logistics network is more efficient than those of similar retailers in other regions, allowing for services like dawn delivery and next-day delivery [6][7] - The company's streamlined operations position it well against competitors, enhancing customer satisfaction [7] Expansion and Growth Opportunities - Coupang acquired luxury goods e-commerce platform Farfetch for $500 million, which has since reached breakeven profitability and attracts 49 million monthly visitors [10][11] - The company is expanding into Taiwan, where it has seen a 23% quarter-over-quarter sales growth and launched its WOW membership program [12][13] Valuation Metrics - Coupang trades at 48 times free cash flow (FCF), primarily due to significant capital expenditures for growth [14][16] - If the company were to reduce its capital spending, its price-to-CFO ratio would be closer to 24, which is a discount compared to the S&P 500 average of 32 times FCF [16] Financial Performance - In Q1, Coupang reported an 11% increase in sales and a 9% increase in active customers, with improvements in gross and net profit margins [17]