The United States District Court for the Western District of Washington denied Coupang, Inc.'s motion to dismiss a former employee's SOX and state law whistleblower claims. The lawsuit alleges that the plaintiff reported transactions with Iranian entities and inadequate internal accounting controls.
The court determined that the plaintiff's SOX claim was timely and that the locus of the employment relationship was in the United States, allowing the case to proceed. This decision means Coupang will face ongoing legal proceedings related to these allegations.
The plaintiff asserted that he reasonably believed the company's failure to disclose prohibited transactions and maintain adequate internal controls violated SEC regulations. The continuation of this lawsuit could result in further legal expenses and potential reputational damage for Coupang.
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