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Investigations  /  11.09.2020

Investigation of Zoom Video Communications

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Zoom Video Communications, Inc. (ZM) Accused of Misleading Shareholders

When Zoom Video Communications, Inc. conducted its initial public offering in April 2019, it touted the Company’s “robust security capabilities, including end-to-end encryption…” Belying this statement, Zoom’s privacy and security flaws were revealed as early as July 2019. Nevertheless, Zoom executives continued to tout its security and integration features.  On March 26, 2020, Vice Media reported that Zoom “is not forthcoming with the data collection or the transfer of it to Facebook.” And, on March 30, 2020, The New York Times reported that Zoom was under scrutiny by the office of New York State Attorney General “for its data privacy and security practices.” Further, several consumers have filed lawsuits against the Company for “illegally disclosing personal information” and shareholders have filed a securities class action against Zoom for its fraudulent misstatements.

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