ZOOM CLASS ACTION LAWSUIT FORM REGISTRATION
Per the complaint, Zoom filed a Form S-1 registration statement with the Securities and Exchange Commission (SEC) in connection with its initial public offering (IPO) on March 22, 2019. The case alleges that as a result of Zoom’s misrepresentations concerning its data security, those who used the company’s “Zoom Meetings” video conferencing service were at an increased risk of having their information accessed by unauthorized parties, stressing that usage of Zoom would likely decline once the platform’s data protection inadequacies came to light. The case out of California further alleges Zoom executives, including CEO Eric Yuan, sold off “substantial portions” of their personal shares just prior to the precipitous price declines outlined by the plaintiff, when company shares were trading at “historic highs.”Īccording to the 35-page lawsuit, Zoom, between Apand April 6, 2020, issued to investors materially false and misleading statements concerning the company’s handling of user data-in particular that such is shared with third parties, including Facebook, without users’ consent-and overall security measures.
New to ? Read our Newswire DisclaimerĪ proposed class action looks to represent Zoom Video Communications investors who were allegedly misled as to the strength of the video conferencing platform’s data privacy, security measures and end-to-end encryption.