STORY FROM: COVID-19 Litigation Report
Zoom Shareholders File Class Action Lawsuit, Say Security Deficiencies Came to Light As a Result of COVID-19 Pandemic
April 10, 2020
SAN FRANCISCO –– A federal securities class action has been filed against Zoom Video Communications for allegedly inadequate data privacy and security measures, noting that the defendant’s software deficiencies did not come to light until the COVID-19 pandemic, when organizations increasingly relied on the defendant’s video communication software to conduct remote work activity.
In a April 7 complaint filed in the U.S. District Court for the Northern District of California, the plaintiffs accused the company of “significantly overstat[ing] the degree to which its video communication software was encrypted,” causing businesses to stop its employees from using Zoom and causing the ...