Zoom Video Communications, Inc.
The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of those who acquired Zoom Video Communications, Inc. (“Zoom” or the “Company”) (NASDAQ: ZM) securities during the period from April 18, 2019 through April 6, 2020 (the “Class Period”). Investors have until June 8, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Zoom had inadequate data privacy and security measures; (ii) contrary to Zoom’s assertions, the Company’s video communications service was not end-to-end encrypted; (iii) as a result of all the foregoing, users of Zoom’s communications services were at an increased risk of having their personal information accessed by unauthorized parties, including Facebook; and (iv) usage of the Company’s video communications services was foreseeably likely to decline when the foregoing facts came to light.
On July 8, 2019, a security researcher published an article alleging that “[a] vulnerability in the Mac Zoom Client allows any malicious website to enable your camera without your permission,” and “[t]he flaw potentially exposes up to 750,000 companies around the world that use Zoom to conduct day-to-day business.” On this news, Zoom’s share price fell $1.12 per share, or 1.2%, to close at $90.76 on July 8, 2019.
On July 11, 2019, public interest research center the Electronic Privacy Information Center (“EPIC”) filed a complaint against Zoom before the U.S. Federal Trade Commission (“FTC”) alleging that “[w]hen informed of the vulnerabilities Zoom did not act until the risks were made public, several months after the matter was brought to the company’s attention,” On this news, Zoom’s share fell $1.32 per share, or 1.4%, to close at $91.40 on July 11, 2019.
Between April 3, 2020 and April 6, 2020, additional information about and fallout from Zoom’s security practices was reported, including that the Connecticut Attorney General had opened an investigation into Zoom’s privacy and security practices and that the New York City Department of Education had banned the use of Zoom from its classrooms. On this news, Zoom’s stock price fell $5.26 per share, or 4.1%, to close at $122.94.
If you acquired Zoom securities, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney LLP at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.