Zoom agrees to settle privacy lawsuit for $85 million: NPR

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Mark was photographed for Zoom Video Communications ahead of the company’s initial public offering on Nasdaq in New York in 2019. The company has agreed to a preliminary settlement in a privacy lawsuit. Mark Lennihan / AP Hide Caption

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Mark was photographed for Zoom Video Communications ahead of the company’s initial public offering on Nasdaq in New York in 2019. The company has agreed to a preliminary settlement in a privacy lawsuit.

Mark Linehan/AFP

Zoom will pay $85 million to settle a lawsuit alleging infringement of users’ privacy rights, according to an initial settlement filed on Saturday. A class action lawsuit by several Zoom users alleges that the company 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.”

The settlement still requires approval by U.S. District Judge Lucy Koh in San Jose, California, but if she signs off, subscribers will receive 15% of refunds on their base contributions, or $25, whichever is greater. Zoom users who haven’t paid for an account can file a $15 claim. Zoom will also increase its security level, commit to alerting users about third-party app data sharing, and take more measures to protect user data.

Zoom’s customer base has exploded over the course of the pandemic. Many groups and organizations have turned to the communication platform as part of work and lifestyle changes to accommodate the restrictions of the coronavirus. Fitness classes, happy hours, court proceedings and presidential campaigns have moved to Zoom. People celebrated weddings and mourned the memorial services.

But the huge rise in the number of users has increased attention to security and privacy holes in the program.

Zoom denies wrongdoing in agreeing to the settlement. A company spokesperson told NPR, “The privacy and security of our users is a top priority for Zoom, and we take very seriously the trust our users place in us. We are proud of the advancements we’ve made in our platform, and we look forward to continuing to innovate with privacy and security at the fore.”

Another hearing in the case is scheduled for October.

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