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Zoom to Settle Lawsuit for $85 Million

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Zoom  (ZM) - Get Free Reporthas agreed to pay $85 million to settle a user privacy lawsuit. If the settlement is approved, subscribers of this popular videoconference app would receive 15% on their core subscriptions or $25, whichever is larger.

A class-action lawsuit was filed in April 2020 alleging that Zoom shared its users' data with Facebook (FB) - Get Free Report, Google  (GOOGL) - Get Free Report, and LinkedIn. The lawsuit also alleged that the company allowed ‘Zoombombing,’ a practice where unknown users post offensive or pornographic content in virtual meetings.

Related: Zoombombing Can Be Prevented By Following These Steps

In a statement to TheStreet, Zoom's spokesperson said that the company takes the trust of its users seriously.

"The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us," Zoom said. "We are proud of the advancements we have made to our platform, and look forward to continuing to innovate with privacy and security at the forefront."

Zoom’s popularity has skyrocketed in the pandemic, resulting in a huge spike in its stock. Its stock price has surged over 500% since Jan. 2020.

Last month, the company acquired Five9 in a $15 billion in an all-stock deal.

Related: What is Five9?

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