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Federal Court OKs $85M Privacy Settlement for Zoom App Users Nationwide

Zoom has agreed to pay users $ 85 million and implement a variety of private reforms in the implementation of its online meeting, as part of a class action lawsuit approved April 21 by a federal judge in San Francisco.

U.S. Attorney General Laurel Biller in the Northern District of California has given final approval to a groundbreaking settlement agreement called a nationwide class action lawsuit by users and subscribers of Zoom Video Communications, Inc., a San Jose-based company with a market capitalization of about $ 30 billion.

Lawyers said the arrangement obliges Zoom to pay $ 85 million to users and implement changes to its business, including a card system that supports users to track reports of meeting disruptions, a documented process for communicating with law enforcement about meeting disruptions involving illegal content and security. Features like waiting rooms for participants, meeting suspension button and ability to block users from specific countries.

The settlement resolves many claims filed in 2020, including Action against zoom by a church in San Francisco Claiming that her Bible study classes were a victim of the “Zoom Bomb”.

The Lutheran Church of St. Paul, one of the oldest churches in the city, held a Bible study class in May 2020, including senior citizens attending.

Many other lawsuits have been filed by Zoom users and St. Paul has eventually become one of a dozen reputable plaintiffs in the consolidated class action lawsuit. Their complaint alleges that Zoom improperly shared user data using third-party software from companies such as Facebook and Google, while falsely claiming that it had end-to-end encryption and failed to prevent “zoom bombing” by unauthorized third parties.

Last year, the court ruled in Zoom’s motion to dismiss, addressing a number of innovative issues raised by the case, including enforcing section 230 of the Media Fairness Act and alleged violation of privacy laws and unfair competition in California.

The court allowed a number of litigation claims to proceed. Following intensive disclosure, the parties negotiated a settlement under which Zoom would pay $ 85 million in monetary compensation and implement comprehensive reforms in its business practices.

The share of Zoom has fallen by almost 80% since its peak in October 2020, due to a combination of slowdown in growth and reduced value multipliers of technology stocks.

The plaintiffs’ legal teams were led by Ahdot Wolfson of Burbank and Cotchett, Pitre & McCarthy of Seattle. The final approval of this month’s arrangement will allow Zoom customers to immediately receive the arrangement benefits.

Mark Molumpy, partner at Cotchett, Pitre and McCarthy, said: “Millions of Americans continue to use the Zoom platform in the expectation that their calls will be kept private and secure. .

Tina Wolfson, a partner at Wolfson Unity added: “In the age of corporate surveillance, this historic arrangement recognizes that data is the new oil and compensates consumers for providing unknowingly data in exchange for a ‘free’ service. It also compensates those who paid for a product they did not receive and requires Zoom to change “Its organizational behavior to better inform consumers about their privacy choices and provide stronger cyber security.”

The case is In re Zoom Video Communications, inc. Privacy LitigationCase No. 5: 20-cv-02155-LB (NDCal).

Federal Court OKs $85M Privacy Settlement for Zoom App Users Nationwide Source link Federal Court OKs $85M Privacy Settlement for Zoom App Users Nationwide

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