Zoom to Pay $85 Million to Settle Privacy Lawsuit

Zoom Video Communications Inc has agreed to pay $85 million on Saturday to settle a lawsuit filed in San Jose, California claiming it violated users’ privacy rights.

The class-action suit by several Zoom users alleged that Zoom has shared personal data with Facebook, Google, and LinkedIn and allowed hackers to disrupt meetings with pornography, inappropriate language, or other disturbing content in a practice called “Zoombombing.”

Subscribers in the proposed class action would be eligible for 15% refunds on their core subscriptions or $25, whichever is larger, while others could receive up to $15.

Zoom has also agreed to increase security measures including alerting users when meeting hosts or other participants use third-party apps in meetings and providing specialized training to employees on privacy and data handling.

The preliminary settlement still needs to be approved by U.S. District Judge Lucy Koh in San Jose, California.

Zoom denied any wrongdoing in agreeing to settle. It did not immediately respond on Sunday to a request for comment from Reuters.

Zoom had 497,000 customers in April 2021, up from 81,900 in January 2020.

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