Video conferencing service provider Zoom has agreed to pay $85 million to settle a class-action lawsuit, which had accused the company of violating California laws by sharing user data to third-party companies and failing to prevent so-called "Zoom Bombing" hacks.
The company was also accused of lying about its platforms providing end-to-end data encryption. Despite agreeing to pay the settlement, Zoom denied any wrongdoing.
The groundbreaking settlement will cover both paying customers and those that opened free accounts on the company's video conferencing platform. Under the settlement, Zoom has agreed to adopt new user privacy rules and to upgrade its security network to prevent "Zoom Bombings."
Cotchett, Pitre & McCarthy, the law firm representing the plaintiffs, said Monday the settlement is the best result they could have hoped for. The law firm expects the agreement to receive preliminary approval within the coming weeks.
How To Get Your Share
U.S. users who registered an account, downloaded the app, or attended meetings between March 30, 206 and July 30, 2021 are eligible to receive part of the settlement payment. Government users, enterprise-level accounts, Zoom employees, and their families are not eligible to receive compensation.
Users who took part in the class-action lawsuit are set to receive email notices within 30 days after the agreement received preliminary approval. Zoom has agreed to also post notices - with instructions on how to get compensation - through various social media platforms, which will be open to non-paying Zoom users.
Lawyers of the plaintiffs said non-paying Zoom users could receive at least $15 at the base level. Those that paid for their accounts will receive at least 15% of the amount they paid for premium access. Lawyers expect the total class size to reach up to 5 million paid subscribers and up to 170 million non-paying registered users.
Zoom Agreement
Part of the agreement required Zoom to implement new privacy measures, including the set up of a website repository aimed at monitoring and preventing meeting disruptions. The company also agreed t implement additional identity authentication measures and new controls for meeting hosts.
In a separate agreement with the Federal Trade Commission, Zoom committed to enhancing its network security systems. Zoom said it has made major advances in securing its platform from hackers. The company added that it will continue to systems to protect its user's data and privacy.
