US Judge Dismisses Coupang Shareholder Lawsuit Over 2021 IPO

A U.S. federal judge dismissed a shareholder lawsuit against Coupang, the South Korean e-commerce giant, accusing it of defrauding investors during and after its 2021 initial public offering (IPO). The suit, led by New York City public pension funds, alleged that Coupang concealed unsafe working conditions, manipulated search results, and coerced suppliers, contributing to a significant drop in its share price. However, U.S. District Judge Vernon Broderick ruled that the statements made by Coupang were either too broad, aspirational, or not materially misleading, and that the plaintiffs failed to provide sufficient evidence or timely claims. The judge also dismissed all claims against the IPO underwriters, including Goldman Sachs and JPMorgan Chase, with prejudice, preventing the case from being refiled. This ruling affirms Coupang’s disclosures and business practices during its major IPO, which was the largest U.S. offering by a foreign company in over six years. The plaintiff pension funds and their representatives have yet to comment on the dismissal.