Zoom Video CEO and founder Eric Yuan recently dumped $38 million of the company's stock ahead of an investigation into security breaches at the video conferencing company.
Securities and Exchange Commission filings viewed by the Daily Mail showed that Yuan and several other senior executives sold millions of dollars worth of their shares while the company has been addressing privacy issues.
Yuan, who has a $6.3 billion fortune, according to Bloomberg's Billionaire Index, made $10.5 million in sales on Jan. 14, another $12.5 million on Feb. 12, and $15.5 million on March 16.
Chief Marketing Officer Janine Pelosi has made close to $14 million in trades since February, the Daily Mail reported. All parties involved declared the sales to the SEC, as is legally required.
Zoom received a letter from the New York attorney general's office for its data privacy and security practices after multiple results of "Zoombombings," in which hackers dropped into private Zoom meetings.
Zoom confirmed receipt of the letter, responding in a statement that it “…takes its users' privacy, security, and trust extremely seriously.”
“During the Covid-19 pandemic, we are working around-the-clock to ensure that hospitals, universities, schools, and other businesses across the world can stay connected and operational," the company said.
Researchers also have identified vulnerabilities in the company's Windows app that could allow attackers to steal login credentials.
Zoom was sued by a man in California this week for allegedly violating the state's consumer privacy law through a "log in with Facebook" feature.
Zoom Video shares have faced a selloff this week after a run-up in recent weeks as the company emerged as the go-to video conferencing app amid social distancing guidelines imposed by states and municipaliries because of the coronavirus pandemic.
Shares were rising 0.3% to $122.33 on Friday.