Zoom in $116 million settlement over privacy

Zoom Video Communications will pay out a class action lawsuit.

Zoom Video Communications will pay out a class action lawsuit. Photo: Getty

Zoom Video Communications will pay $A116 million out-of-court for a class action lawsuit that claims it violated users’ privacy rights.

The US company owns a video conferencing program that became the most popular app during the coronavirus pandemic.

The lawsuit, filed last year, accuses Zoom of violating laws protecting users’ privacy by sharing their data with tech giants, including Google, Facebook and LinkedIn.

In addition, the plaintiffs also said Zoom did not do enough to protect users from “Zoombombing,” in which hackers disrupted meetings, and which was especially prevalent during the first months of the COVID-19 pandemic.

According to the preliminary settlement, filed in San Jose on Saturday and which requires approval from US District Judge Lucy Koh, the parties accepted an agreement whereby each user who has been affected by the alleged violation of their rights would receive between $US15 ($A20) and $US25 ($A34), without having to be one of the original plaintiffs.

The rest of the money will go towards paying administration costs and lawyers’ fees.

The videoconferencing platform experienced unprecedented growth at the start of the pandemic with the transition to remote work and education, going from being a tool used primarily by college students to becoming ubiquitous in virtually all sectors.

In mid-July, the San Jose-based firm signed an agreement to acquire Five9, a leading provider of cloud contact centre software, in an all-stock deal valued at $US14.7 billion ($A20.0 billion) and expected to close in 2022.

Under the agreement, Five9 shareholders will receive 0.5533 shares of Class A common stock of Zoom for each share of Five9, which corresponds to a price of $US200.26 ($A272.72) per Five9 common stock, Zoom announced.

The boards of directors of Zoom and Five9 have already approved the transaction.


Topics: Zoom
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