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Photo: Coupang |
[Alpha Biz= Kim YoungTaek] Coupang Inc., the U.S.-listed e-commerce company, has won a class action lawsuit alleging that it misled investors during its initial public offering (IPO).
Judge Vernon Broderick of the U.S. District Court for the Southern District of New York dismissed the case filed in 2021 by certain Coupang shareholders, ruling that the plaintiffs failed to establish evidence of deception.
The plaintiffs, which included the New York City Employees’ Retirement System, claimed that Coupang’s registration statement filed with the New York Stock Exchange in March 2021 contained false and misleading information. They alleged that the company concealed poor working conditions at its logistics centers, manipulated search results, encouraged employees to post favorable reviews for its private-label products, and forced unfair pricing on suppliers.
According to the lawsuit, these issues later led to investigations by the Korea Fair Trade Commission and warehouse fires, contributing to a sharp decline in Coupang’s stock price and investor losses.
Coupang’s share price reached an intraday high of $69 on its IPO debut in March 2021, but subsequently fell below $10 by May 2022. Since then, the stock has struggled to trade above the $20 level for an extended period.
Alphabiz 김영택 기자(sitory0103@alphabiz.co.kr)
