Zoom will pay tens of millions of dollars for Zoombombing and the transfer of personal data


 

Zoom Video Communications, the company behind the popular Zoom platform, agreed to pay $ 85 million and improve its security practices to settle a lawsuit that alleged the company violated users' privacy rights. The lawsuit alleged that the platform transferred the personal data of Facebook, Google, and LinkedIn users. It also talked about how hackers learned how to interrupt video conferencing in Zoom using a process called Zoombombing.


In the settlement agreement, the company denies wrongdoing. The prior settlement requires approval from US District Judge Lucy Koch in San Jose, California. In terms of compensation, platform subscribers in the proposed class action will be eligible for a refund of 15% of their basic subscriptions or $ 25, whichever is greater, while others may receive up to $ 15. In addition to monetary compensation, Zoom has also agreed to security measures, including notifying users when video organizers or other contributors are using third-party apps.


While Zoom raised about $ 1.3 billion in subscriptions to Zoom Meetings, plaintiffs demanded $ 85 million in damages, which they considered reasonable. They also intend to demand up to $ 21.25 million in legal fees.


Zoom use has skyrocketed during the Covid-19 pandemic as businesses, schools and colleges moved to online communication. The company had 497,000 customers in April 2021, significantly more than 81,900 in January 2020. But the company says user growth could slow or decline as more people get vaccines and return to work or study.

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