Investigation
BioXcel Therapeutics, Inc. (BTAI)
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.
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Investigation
07/13/2022
Initial Lawsuit
08/26/2022
Lawsuit Progression
10/25/2022
A Coupang, Inc. (CPNG) investor filed a securities class action lawsuit on behalf of all purchasers of Coupang Class A common stock pursuant and/or traceable to the registration statement issued in connection with Coupang’s March 2021 initial public offering (IPO), seeking to pursue remedies under the Securities Act of 1933, against Coupang, certain of Coupang’s officers and directors, and certain of the IPO’s underwriters.
According to the complaint, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the company’s business, operations, and prospects. Specifically, defendants allegedly failed to disclose to investors:
(a) that Coupang was engaged in improper anti-competitive practices with its suppliers and other third parties in violation of applicable regulations, including: (i) pressuring suppliers to raise prices of products on competing e-commerce platforms in order to ensure Coupang’s prices would be more competitive; (ii) coercing suppliers into purchasing advertisements that would benefit Coupang financially; (iii) forcing suppliers to shoulder all expenses from sales promotions; and (iv) requesting wholesale rebates from suppliers without specifying any terms relating to rebate programs, all of which served to artificially maintain the company’s lower prices and artificially inflate the Company’s historical revenues and market share;
(b) that Coupang had improperly adjusted search algorithms and manipulated product reviews on its marketplace platform in order to prioritize its own private-label branded products over those of other sellers and merchants, to the detriment of consumers, merchants, and suppliers;
(c) that, unbeknownst to its Rocket WOW members, Coupang was selling products to non-member customers at lower prices than those offered to its Rocket WOW members;
(d) that Coupang subjected its workforce to extreme, unsafe, and unhealthy working conditions;
(e) that all of the above illicit practices exposed the company to a heightened, but undisclosed, risk of reputational and regulatory scrutiny that would harm the company’s critical relationships with consumers, merchants, suppliers, and the workforce; and
(f) that Coupang’s lower prices, historical revenues, competitive advantages, and growing market share were the result of systemic, improper, unethical, and/or illegal practices, and, thus, unsustainable.
Confidential investigation: officers & directors’ potential breach of fiduciary duties to investors.