# Zoom reaches $85 million settlement over user privacy, ‘Zoombombing’
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-08-02
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Zoom Settles Privacy Lawsuit: £85M Payment
Meta Description: Zoom settles privacy lawsuit by paying $85 million, enhancing security practices, and denying wrongdoing in a class action lawsuit regarding privacy violations
URL: https://financedigest.com/zoom-reaches-85-million-settlement-over-user-privacy-zoombombinghtml

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By Jonathan Stempel

(Reuters) -Zoom Video [Communications](https://www.financedigest.com/mifid-ii-how-regulation-updates-will-change-finance-communications.html) Inc 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.

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

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 agreed to [security measures including alerting users](https://www.financedigest.com/ai-is-the-new-password-security-and-ease-for-finance-users.html "AI is the new password: security and ease for finance users ") when meeting hosts or other participants use third-party apps in meetings, and to provide specialized training to employees on privacy and data handling.

The San Jose-based company denied wrongdoing in [agreeing to settle](https://www.financedigest.com/cvs-walmart-walgreens-agree-to-pay-13-8-billion-to-settle-u-s-opioid-claims-sources.html "CVS, Walmart, Walgreens agree to pay .8 billion to settle U.S. opioid claims – sources").

In a statement on Sunday, Zoom said: “The [privacy](https://www.financedigest.com/navigating-data-privacy-laws-for-online-businesses-a-comprehensive-guide.html) and security of our users are [top priorities](https://www.financedigest.com/2017-cfo-outlook-top-priorities-as-new-year-gets-underway.html "2017 CFO Outlook: Top Priorities as New Year Gets Underway") for Zoom, and we take seriously the trust our users place in us.

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

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](https://www.financedigest.com/td-other-banks-reach-1-35-billion-settlements-to-end-stanford-litigation.html "TD, other banks reach .35 billion settlements to end Stanford 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.

Koh said [Zoom](https://www.financedigest.com/zoom-shares-down-90-from-peak-as-pandemic-boom-fades.html) was “mostly” immune for Zoombombing under Section 230 of the federal [Communications Decency Act](https://www.financedigest.com/dodge-a-bullet-with-the-insurance-act-2015-act-now-to-implement-two-way-communication.html "Dodge a bullet with the Insurance Act 2015: Act now to implement two-way communication"), which shields online platforms from liability over user content.

[Zoom’s customer base has grown sixfold since the COVID-19 pandemic](https://www.financedigest.com/zoom-shares-down-90-from-peak-as-pandemic-boom-fades.html "Zoom shares down 90% from peak as pandemic boom fades") forced more people to work from home.

The [company had 497,000 customers](https://www.financedigest.com/swiss-insurance-company-helvetia-uses-squirro-to-deliver-better-search-results-to-its-five-million-customers.html "Swiss insurance company Helvetia uses Squirro to deliver better search results to its five million customers") with more than 10 employees in April 2021, up from 81,900 in January 2020. It has said user growth could [slow or decline as more people get vaccines and return](https://www.financedigest.com/investors-seek-higher-returns-as-catastrophe-bond-issuance-slows-during-q2-according-to-aon-study.html "INVESTORS SEEK HIGHER RETURNS AS CATASTROPHE BOND ISSUANCE SLOWS DURING Q2, ACCORDING TO AON STUDY") to work or school in-person.

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

(Reporting by Jonathan Stempel in New York; Editing by Andrea Ricci and Lisa Shumaker)


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