Zoom Video Communications Inc will pay USD85 million and also agreed to bolster its security practices to settle a class action lawsuit over claims that the company allegedly shared personal data with Facebook, Google and LinkedIn as well as instances of ‘zoombombing’, instances where hackers joined meetings and posted pornography, inappropriate language or other disturbing content.
Paid subscribers in the class action lawsuit are eligible for 15% refunds on their Zoom core subscriptions, or $25 – whichever amount is larger – and other Zoom users could be eligible for up to $15, according to the settlement.
In March 2020, following several instances of ‘zoombombing’ across the world as more and more people moved to virtual meetings in the face of pandemic-related lockdowns, the FBI had issued a warning against such practice. The agency had urged victims of ‘teleconference hijacking’ to report such incidents.
Zoom has agreed to more than a dozen “major changes to its practices, designed to improve meeting security, bolster privacy disclosures, and safeguard consumer data”, according to the settlement documents.
These changes could include “in-meeting notifications to make it easier for users to understand who can see, save, and share Zoom users’ information” and “alerting users when a meeting host or another participant uses a third-party application during a meeting”.
However, the San Jose-based company denied any wrongdoing in agreeing to settle.
In a statement, Zoom said: “The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us.
“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.”
The plaintiffs’ lawyers called the $85 million settlement reasonable given the litigation risks.
According to CNBC, Zoom’s customer base has grown sixfold since the Covid-19 pandemic forced more people to work from home. The company had 497,000 customers with more than 10 employees in April 2021, up from 81,900 in January 2020.
The deal requires approval from US District Judge Lucy Koh in San Jose, California, before it is finalised.
