Zoom has suffered a huge loss amid the Covid-19 pandemic. the video conferencing application will have to pay $85 million to settle a lawsuit. The lawsuit alleges that the application had weak privacy controls that opened too many peepholes into the personal information of users. Due to this peephole, it was too easy for outsiders to disrupt video meetings during the early stages of the pandemic.
The proposed agreement must still be approved by US District Judge Lucy Koh. Millions of people in the US have used Zoom since March 31, 2020, and now after the suit was filed, they all could be eligible for a slice of the settlement that was reached over the weekend. The payment amounts are expected to average $34 or $35 for those who subscribed to Zoom's paid version. While, $11 or $12 for the overwhelming majority who used the free version, based on estimates in court documents. Last year, due to security issues Zoom was bedeviled after stay-at-home orders transformed the company's videoconferencing service from a niche product into a cultural phenomenon. The lawsuit alleged that the Silicon Valley company violated the trust of millions of people by sharing the personal information of users with platforms like Facebook, Google, and Microsoft-owned LinkedIn. There are 14 different lawsuits filed since March 2020, targeting the disruptive practice of “Zoombombing." The company in a prepared statement said that it acted quickly to tighten security after reports of Zoombombing began to surface. The company didn't acknowledge any wrongdoing in the settlement.
Zoom's annual revenue tetrad last year to nearly $2.7 billion and it ended April with nearly 500000 customers that employed at least 10 workers and subscribed to the premium version of its service. Its stock price has tripled and traded close to $380 Monday. The lawyers that pursued the case are seeking $21.25 million, or 25% of the $85 million settlement fund.
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