Zoom to Settle $85 Million Class Action

Eve-Carrie
Eve-Carrie

Updated · Feb 21, 2022

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A 31st July 2021 federal court filing shows that Zoom Video Communications Inc agreed to pay $85 million in preliminary settlements. The company also promised to strengthen its security practices. 

Lawsuit Details

Back in 2020, users claimed that Zoom was sharing personal data with Linkedin, and Facebook

Plaintiffs also accused the company of falsely claiming it offers end-to-end encryption. Because of weak security hackers were also “zoombombing” meetings. 

Due to that, the platform was displaying racist language, pornography, and other inappropriate content to users. 

The Zoom meeting hijacking was so bad, prompting the involvement of the FBI

Zoom has maintained that it hasn’t done anything wrong. It has agreed, however, to refund its users partial subscription fees.

Lucy Koh, the US District judge will have to approve the proposition before Zoom starts making the payouts. 

If it goes through, paid users will receive either $25 or 15% refunds on core subscriptions, depending on which is larger. Others could get  $15 on the same.

New Security Measures

In an interview, the firm’s spokesman said that safety and privacy are its top priority.

Therefore, it will alert users if their hosts are using third-party applications going forward. It will also train employees on how to handle data and apply heightened privacy. 

Reasonable Deal

Zoom has made $1.3 billion from class members meeting subscriptions. 

According to the plaintiff’s attorneys, the $85 million is fair. They plan to ask for legal fees amounting to $21.5 million.   

Zoom has so far upped its security with 256-bit encryption to match popular video conferencing solutions.

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Eve-Carrie

Eve-Carrie

Eve is a lover of everything technology. Figuring out how software works and creating content to shed more light on the value it offers users is her favorite past time. When not evaluating apps or programs, she's busy trying out new healthy recipes, doing yoga, meditating, or taking nature walks with her little one.

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