Zoom to pay users $85 million in compensation for 'Zoombombing'
The lawsuit claimed that the company violated user privacy by sharing data with third-party platforms and allowing malicious actors to enter and disrupt meetings. The plaintiffs' attorneys said the settlement was fair given the litigation risks
Cybertech
| 04/08/2021
REUTERS/Dado Ruvic/Illustration/File
A settlement was reached in a lawsuit against Zoom in California. The company agreed to pay $85 million in compensation and reinforce its security practices. The plaintiffs alleged that the company violated their privacy by sharing data with third-party platforms such as Facebook, Google and LinkedIn, as well as by allowing hackers to enter and disrupt meetings verbally or with disturbing content, a practice called "Zoombombing".
The plaintiffs are not expected to get rich. In the framework of the plea bargain, subscribers who were part of the lawsuit will be eligible for rebates of 15% on their basic subscriptions or $25, whichever is greater, while others will be eligible to receive up to $15. The plaintiffs also intend to seek more than $21 million in legal fees.
Zoom raised about $1.3 billion in subscriptions from group members, but the plaintiffs' attorneys believe that the $85 million settlement is reasonable given the risks involved in bringing the lawsuit to trial. This is due to Section 230 of the U.S. Communications Decency Act that protects online platforms from liability for user content. This section – which is also connected to Facebook, Twitter and actually all the relevant platforms – has sparked growing controversy in the U.S. Two weeks ago, the White House announced that the Section 230 protections are under review.
In the framework of the settlement, Zoom also agreed to install additional security measures that include alerting users when third-party applications are used in meetings, and to provide training to employees on privacy and handling of data to which they are exposed. "The privacy and security of our users are Zoom’s top priorities, and we take seriously the trust our users place in us," the company said in a statement in response to the settlement.
Reuters reported that the number of users of the platform grew more than six times since the outbreak of the COVID-19 pandemic, from 81,900 in January 2020 to 497,000 in April 2021.
The lawsuit claimed that the company violated user privacy by sharing data with third-party platforms and allowing malicious actors to enter and disrupt meetings. The plaintiffs' attorneys said the settlement was fair given the litigation risks
REUTERS/Dado Ruvic/Illustration/File
A settlement was reached in a lawsuit against Zoom in California. The company agreed to pay $85 million in compensation and reinforce its security practices. The plaintiffs alleged that the company violated their privacy by sharing data with third-party platforms such as Facebook, Google and LinkedIn, as well as by allowing hackers to enter and disrupt meetings verbally or with disturbing content, a practice called "Zoombombing".
The plaintiffs are not expected to get rich. In the framework of the plea bargain, subscribers who were part of the lawsuit will be eligible for rebates of 15% on their basic subscriptions or $25, whichever is greater, while others will be eligible to receive up to $15. The plaintiffs also intend to seek more than $21 million in legal fees.
Zoom raised about $1.3 billion in subscriptions from group members, but the plaintiffs' attorneys believe that the $85 million settlement is reasonable given the risks involved in bringing the lawsuit to trial. This is due to Section 230 of the U.S. Communications Decency Act that protects online platforms from liability for user content. This section – which is also connected to Facebook, Twitter and actually all the relevant platforms – has sparked growing controversy in the U.S. Two weeks ago, the White House announced that the Section 230 protections are under review.
In the framework of the settlement, Zoom also agreed to install additional security measures that include alerting users when third-party applications are used in meetings, and to provide training to employees on privacy and handling of data to which they are exposed. "The privacy and security of our users are Zoom’s top priorities, and we take seriously the trust our users place in us," the company said in a statement in response to the settlement.
Reuters reported that the number of users of the platform grew more than six times since the outbreak of the COVID-19 pandemic, from 81,900 in January 2020 to 497,000 in April 2021.
