Zoom Settles ‘Zoombombing’ User Privacy Lawsuit in US for $85 Million

Zoom agreed to pay $85 million (roughly Rs. 630 crores) and bolster its safety practices to settle a lawsuit claiming it violated customers’ privateness rights by sharing private information with Facebook, Google, and LinkedIn, and letting hackers disrupt Zoom conferences in a follow known as Zoombombing.

A preliminary settlement filed on Saturday afternoon requires approval by US District Judge Lucy Koh in San Jose, California.

Subscribers within the proposed class motion could be eligible for 15 % refunds on their core subscriptions or $25 (roughly Rs. 1,860), whichever is bigger, whereas others may obtain as much as $15 (roughly Rs. 1,120).

Zoom agreed to safety measures together with alerting customers when assembly hosts or different contributors use third-party apps in conferences, and to offer specialised coaching to staff on privateness and information dealing with.

The San Jose-based firm denied wrongdoing in agreeing to settle.

In a press release on Sunday, Zoom mentioned: “The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us.”

Saturday’s settlement got here after Koh on March 11 let the plaintiffs pursue some contract-based claims.

Though Zoom collected about $1.3 billion (roughly Rs. 9,670 crores) in Zoom Meetings subscriptions from class members, the plaintiffs’ attorneys known as the $85 million (roughly Rs. 630 crores) settlement cheap given the litigation dangers. They intend to hunt as much as $21.25 million (roughly Rs. 160 crores) for authorized charges.

Zoombombing is the place outsiders hijack Zoom conferences and show pornography, use racist language or publish different disturbing content material.

Koh mentioned Zoom was “mostly” immune for Zoombombing beneath Section 230 of the federal Communications Decency Act, which shields on-line platforms from legal responsibility over consumer content material.

Zoom’s buyer base has grown sixfold because the COVID-19 pandemic pressured extra folks to work at home.

The firm had 497,000 clients with greater than 10 staff in April 2021, up from 81,900 in January 2020. It has mentioned consumer progress may gradual or decline as extra folks get vaccines and return to work or faculty in-person.

The case is In re: Zoom Video Communications Inc Privacy Litigation, US District Court, Northern District of California, No. 20-02155.

© Thomson Reuters 2021