According to the terms of preliminary settlement filed before U.S. District Judge Lucy Koh in San Jose, California, Zoom Video Communications Inc has agreed to pay $85 million to settle a lawsuit which alleged claimed that 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.
Zoom Video Communications has also said it will bolster its security practices.
The settlement will require approval by U.S. District Judge Lucy Koh.
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 has agreed to put into place security measures including alerting users when meeting hosts or other participants use third-party apps in meetings, as well as provide specialized training to employees on data handling and privacy.
Zoom has denied wrongdoing in the settlement.
“The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us,” said Zoom in a statement.
Although Zoom collected around $1.3 billion through subscriptions from its Zoom Meetings from class members, the plaintiffs’ lawyers called the $85 million settlement reasonable citing litigation risks. Plaintiffs’ lawyers aim to seek up to $21.25 million in legal fees.
Since the COVID-19 induced COVID-19 pandemic, Zoom’s customer base has grown sixfold.
As of 30, April 2021, Zoom had 497,000 clients and more than 10 employees; this is up from 81,900 in January 2020. It has said user growth could slow or decline as more people get vaccines and return to work or school in-person.
The case is Zoom Video Communications Inc Privacy Litigation, U.S. District Court, Northern District of California, No. 20-02155.