New York: Zoom Video Communications Inc (ZM.O) agreed to pay $85 million and bolster its security practices to settle a lawsuit claiming it violated users’ privacy rights by sharing personal data with Facebook, Google and LinkedIn, and letting hackers disrupt Zoom meetings in a practice called Zoombombing.
While Zoom denied wrongdoing, it did agree to improve its security practices.
In a statement, Zoom said: “The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us.”
The settlement will set up a “non-reversionary cash fund of $85 million to pay valid claims, notice and administration costs, Service Payments to Class Representatives, and any attorneys’ fees and costs awarded by the Court,” according to the preliminary settlement.
Though Zoom collected about $1.3 billion in Zoom Meetings subscriptions from class members, the plaintiffs’ lawyers called the $85 million settlement reasonable given the litigation risks. They intend to seek up to $21.25 million for legal fees.
Zoombombing is where outsiders hijack Zoom meetings and display pornography, use racist language or post other disturbing content.
