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Zoom agrees to a $115 million settlement over user privacy concerns, dubbed "Zoombombing."

Andrew Reeve

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(REUTERS) - NEW YORK - Zoom has agreed to settle a lawsuit alleging that it violated users' privacy rights by sharing personal data with Facebook, Google, and LinkedIn, as well as allowing hackers to disrupt Zoom meetings in a practice known as Zoombombing, Zoom Video Communications agreed to pay US$85 million (S$115 million) and strengthen its security practices.

A tentative settlement filed on Saturday (July 31) afternoon in San Jose, California, must be approved by United States District Judge Lucy Koh. Subscribers in the proposed class action could receive 15% refunds on their core memberships, or up to US$25, whichever is greater, while others could receive up to US$15.



Zoom committed to take security steps such as notifying users when meeting hosts or other participants use third-party apps in meetings, as well as providing specialized privacy and data handling training to staff.

In agreeing to settle, the San Jose-based business denied any wrongdoing. "The privacy and security of our users are top priority for Zoom," the company said in a statement on Sunday. "We take seriously the trust our users invest in us."


The settlement was reached on Saturday after Judge Koh allowed the plaintiffs to pursue some contract-based claims on March 11. Despite the fact that Zoom received about US$1.3 billion in Zoom Meetings subscriptions from class members, the plaintiffs' lawyers described the US$85 million settlement as appropriate in light of the litigation risks. They plan to seek legal fees of up to US$21.25 million.

Outsiders who hijack Zoom meetings and exhibit pornography, use racist language, or upload other offensive content is known as Zoombombing.

Source: The Straits Times



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