Zoom Video (Zoom) Communications has raised $85 million to settle a lawsuit claiming it violated users’ privacy rights by sharing personal data with Facebook, Google, and LinkedIn. has agreed to pay and enhance its security practices. A preliminary settlement, filed Saturday afternoon, requires approval by U.S. District Judge Lucy Koh in San Jose, Calif. Members in the proposed class action will be eligible for a 15% refund on their subscription or $25, whichever is larger, while others can receive up to $15.
Zoom agreed on security measures, including alerting users when meeting hosts or other participants, using third-party apps in meetings, and providing staff specialized training on privacy and data management. The San Jose-based company denied wrongdoing in agreeing to the settlement. It did not immediately respond to a request for comment on Sunday. This settlement was reached by Koh on Saturday 11 March after looking at the contract based claims.
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Although Zoom collected about $1.3 billion in Zoom Meetings subscriptions from class members, lawyers called the $85 million settlement justified given the litigation risks. They want to seek up to $21.25 million in legal fees.
What is Zoombombing?
Zoombombing involves hackers hijacking Zoom meetings and displaying pornography, using racist language or posting other disturbing content. Koh said that Zoom has been found responsible for Zoombombing under Section 230 of the Federal Communications Decency Act, which covers the privacy and security of users.
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Due to the COVID-19 pandemic, more people had to work from home, due to which the number of Zoom customers has increased up to 6 times. The company had 497,000 customers with more than 10 employees in April 2021, up from 81,900 in January 2020. Due to the relaxation in the COVID-19 pandemic and the vaccine for Corona, the number of customers of Zoom may now decrease.
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