Zoom facing class-action suit over privacy, security shortfalls

Zoom facing class-action suit over privacy, security shortfalls
© Kena Betancur/Getty Images

The video conferencing company Zoom is facing a class-action lawsuit filed Tuesday with accusations that the app overstated its privacy policies and has failed to meet security standards.

Shareholder Michael Drieu filed the suit after multiple news reports highlighted privacy issues within Zoom's application, according to Reuters.

Shares for Zoom closed down nearly 7.5 percent at $113.75 Tuesday evening.

ADVERTISEMENT

The company's stock, which had risen tremendously at the beginning of the year, had fallen and lost nearly a third of its market value since late March when reports of flawed security became more prevalent in the media.

Zoom CEO Eric Yuan apologized last week to users and said the company would take steps to fix privacy and security issues, saying the company had fallen short on its duty.

The primary worry users face with the app is the threat of unsolicited "Zoom bombing," a term used to describe uninvited guests coming into meetings due to a lack of end-to-end encryption.

Companies such as SpaceX and governmental entities such as Taiwan's Cabinet have forbidden the use of Zoom, citing security flaws.

Other critics of the video conferencing company include Sen. Michael BennetMichael Farrand BennetDemocratic senators kneel during moment of silence for George Floyd 21 senators urge Pentagon against military use to curb nationwide protests Warren condemns 'horrific' Trump tweet on Minneapolis protests, other senators chime in MORE (D-Colo.), who expressed concerns about the flawed security and privacy measures within the application.

"In case after case, these issues consistently stem from Zoom's deliberate decision to emphasize ease of use over user privacy and safety," Bennet wrote in a letter to Yuan.

ADVERTISEMENT

A spokesperson for Zoom previously told The Hill that "Zoom is working around-the-clock to ensure that universities, schools, and other businesses around the world can stay connected and operational during this pandemic, and we take user privacy, security, and trust extremely seriously. We appreciate Senator Bennet's engagement on these issues and look forward to discussing with his office."

Another class-action suit was filed by a Zoom user last week, with concerns that the company is allegedly sharing data with Facebook and other third-party applications without the consent of users.

The Hill reached out to Zoom about the most recent class-action suit but has not immediately heard back.