Zoom reaches $85 million settlement in lawsuit over user privacy and 'Zoombombing'
Zoom Video Communications agreed to pay $85 million and bolster its security practices to settle a lawsuit claiming it violated users' privacy rights by sharing personal data with Facebook, Google and LinkedIn, and letting hackers disrupt Zoom meetings in a practice called Zoombombing.
A preliminary settlement filed on Saturday afternoon requires approval by US District Judge Lucy Koh in San Jose, California.
Subscribers in the proposed class action would be eligible for 15% refunds on their core subscriptions or $25, whichever is larger, while others could receive up to $15.
Zoom agreed to security measures including alerting users when meeting hosts or other participants use third-party apps in meetings, and to provide specialized training to employees on privacy and data handling.
The San Jose-based company denied wrongdoing in agreeing to settle. It did not immediately respond on Sunday to a request for comment.
Saturday's settlement came after Koh on March 11 let the plaintiffs pursue some contract-based claims.
Though Zoom collected about $1.3 billion in Zoom Meetings subscriptions from class members, the plaintiffs' lawyers called the $85 million settlement reasonable given the litigation risks. They intend to seek up to $21.25 million for legal fees.
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