Video software company Zoom has agreed to pay $85m (£61.9m) to settle a privacy lawsuit claiming the firm violated user’s rights and allowed hackers into meetings.
The conferencing firm had allegedly shared users personal data with Facebook, Google, and LinkedIn. The lawsuit also claimed Zoom had failed to prevent hackers from zoombombing calls.
Zoombombing is described as outsiders hijacking meetings and to display pornography, use racist language or post other disturbing content.
Zoom denied any wrongdoing.
In response to the allegations, Zoom agreed to boost security measures, including notifying users when hosts or participants use third-party apps in meetings, and provide employees training on privacy and data handling.
“The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us,” a company statement read.
Filed on 31 July, the settlement requires approval from San Jose district judge Lucy Koh.
Should this settlement be approved subscribers in the proposed action class could be eligible for 15% refunds or $25, whilst others could received up to $15.
On March 11 Koh allowed plaintiffs to pursue claims and have since called the settlement reasonable given they intend to seek up to $21.25 million for legal fees, after the company has made approximately $1.3bn (£934.8m) in subscriptions.
Koh said, the San-Jose based company was “mostly” not liable for Zoombombing under the US Section 230 of the federal Communications Decency Act, which shields online platforms from liability over user content.
Since the beginning of the Covid-19 pandemic Zoom’s customer base has grown to a sixfold figure as a result of more people working from home, however the conference company suspects users will decline as people return to offices.