ALERT SUMMARY
The video chat platform Zoom has agreed to pay $85 million in what appears to be a class action lawsuit claiming that the company shared the personal data of it’s customers with third-parties like Facebook, Google and LinkedIn as well as letting hackers gain unauthorized access to a meeting. This type of hack allows the perpetrators to disrupt meetings with displays or posts of malicious content like pornography or racist language.
On the approval of a court in San Jose, California, Zoom subscribers could be eligible for a discount off their subscription or a lump sum of at least $15 even as Zoom denies any wrongdoing. Zoom has made the statement,
“The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us.”
Ahead of the settlement, the judge allowed plaintiffs to pursue contract breach claims first. The judge further said that under Section 230 of the Federal Communications Decency Act, online platforms are shielded from liability over user content so the Zoombombing claim is off the table.
Zoom Meetings subscriptions has brought in almost $1.3 billion for the company. Zoom had almost half a million customers and more than 10 employees in April 2021 which is about a 600% increase from 82,000 in 2020. This substantial increase occurred when the COVID-19 pandemic hit which kept people at home. Plaintiff lawyers have indicated the $85 million in settlement is reasonable given the circumstances in the situation. Legal fees for the lawsuit could reach as much as $21 million.
Zoom has also agreed to changing their app’s user experience by including alerts to users when any third-party apps are in use in a meeting. Zoom has also agreed to train their employees on subscriber privacy and information handling.
Next Steps - For additional details and Step-By Step Instructions on how to protect and respond to this Alert, follow the link below.
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