Zoom must fork over $85 million in damages stemming from their inadequate privacy controls during the early stages of the COVID-19 pandemic.
The video conference tech platform was sued over a mountain of security issues last year when much of the world was forced into stay-at-home orders. The suit claims that the company violated millions of its users by sharing their personal information with Google, LinkedIn, and Facebook. The company was also found at fault for “Zoombombing,” the phenomenon that described hackers being able to easily disrupt Zoom meetings held by strangers.
The case combined 14 different suits filed since March 2020 into one. Following the settlement announcement on Monday, Zoom stated that they are “proud of the advancements” that they’d made regarding the “Zoombombing.” However, they did not address sharing personal user data with other platforms.
Last year, as the pandemic pulled millions of people out of traditional jobs and schools, Zoom’s user base exploded. Their yearly sales soared to over $2.7 billion as most parts of life moved online. As of April, the platform served 497,000 customers in the United States, a significant jump from the 81,900 customers it served before the pandemic.
Millions of Americans could be entitled to a portion of the settlement funds. Those who purchased Zoom’s premium version will likely receive between $34 and $35. Individuals who used the free version will be paid anywhere from $11 to $12.
U.S. District Judge Lucy Koh must still approve the settlement during a hearing scheduled for October 21st.
