Zoom reaches $86m settlement over user privacy

According to the latest news, Zoom agreed to pay $86 million and strengthen its security practices to settle a lawsuit.

The lawsuit accused the firm that it violated users’ privacy rights by sharing personal data with Google, Facebook and LinkedIn. Moreover, it accused Zoom of letting hackers disrupt Zoom meetings in a practice called Zoombombing.

The firm denied any allegations but has agreed to raise its security practices.

A preliminary settlement was filed on Saturday afternoon. It requires approval by U.S. District Judge Lucy Koh in California.

Zoom agreed to security measures. The firm pledged to alert users when meeting hosts or other members use third-party apps in meetings. The video communication giant also pledged to provide specialized training to employees on privacy and data handling.

On Sunday, Zoom announced that the privacy and security of users are top priorities for the firm. The company also reported that they take seriously the trust users place in them.

Another essential thing to mention is that the class-action lawsuit is just one of several legal complaints facing Zoom. It is filed in the U.S. District Court in California in March 2020

It was filed on behalf of Zoom Meetings paid subscribers and free users around the world.

Zoom’s customer base has grown sixfold since the coronavirus pandemic hit the world

According to the plaintiff’s lawyers, U.S. Zoom subscribers made $1.3 billion in revenues for Zoom.

Remarkably, subscribers would be eligible for 15% refunds on their subscriptions or $25, whichever is larger, while others could receive up to $15.

Moreover, lawyers also aim to seek $21.3 million in legal fees from Zoom. The company had asked the court to dismiss the motion earlier in March.

However, only part of the case of invasion of privacy and negligence was dismissed. Koh allowed the plaintiffs to resume to pursue some claims relating to contracts.

Zoom’s customer base has grown sixfold since the coronavirus pandemic hit the world and forced more individuals to work from home.

The firm had 497,000 users with over 10 employees in April 2021. Remarkably, in January 2020, it had 81,900 customers. However, analysts say that user growth could slow or fall as more individuals get vaccines and return to work or school in-person.