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ZM.US
id: 785

Zoom Video Communications (ZM) $150M Shareholder Settlement

Late claims are being considered for compensation, subject to approval.
$150,000,000
Cash Settlement
N.D. California
Court
3:20-cv-02353
Case number
04/18/2019
Class period Start
04/06/2020
Class period End
09/16/2025
Claim deadline
Zoom recently agreed to pay $150M to settle claims from investors. The settlement resolves claims that Zoom hid problems with its software encryption and shared personal information with third parties. Outline Back in 2020, Zoom was accused of hiding problems with its software encryption, vulnerability to hackers, and sharing personal information with third parties. Much news has been reported on significant flaws in Zoom's data privacy and security measures. Following this, $ZM significantly fell, and Zoom faced a lawsuit from investors. Timeline
  • On July, 2019: News reported that Zoom's software had security issues related to encryption.
  • On March 26, 2020: Press releases revealed that user data was vulnerable to third parties, including Facebook.
  • On March 27, 2020: After this news came out, $ZM fell 19%.
  • On May 18, 2020: The stockholder filed a suit against Zoom for misleading people about its encryption and security measures.
  • On July 12, 2023: Zoom reached an agreement to resolve investors’ claims for $150 million.
Background In July 2019, reports came out about major security problems with Zoom's software encryption, raising concerns about its ability to protect user data. Despite these concerns, Zoom claimed it had full end-to-end encryption. However, it was found that Zoom was using transport encryption, which is less secure. Further news revealed that Zoom exaggerated its encryption capabilities, making user data vulnerable to third parties, including Facebook. On March 27, 2020, after these security issues were disclosed, $ZM dropped by 19.62%. After that, in 2020, Zoom was sued by shareholders who claimed the company misled them about its data privacy and security, especially its encryption. What can investors expect now? Zoom has agreed to pay $150M to settle claims from investors to resolve all the allegations related to the security problems. If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.


Case Type
US Securities Class Action
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements, 
Failure to Disclose, 
Omissions
Suspected Party
Directors, 
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
3.08
Filing date
04/07/2020
Plaintiffs
Adam M. Butt
Attorneys
Robbins Geller Rudman & Dowd LLP (San Francisco, CA)
Defendants
Eric S. Yuan, Kelly Steckelberg
Judge
Hon. James Donato
Administrator
Gilardi & Co LLC
Settlement agreement date
2023-07-17
Court hearing date
10/09/2025
Exclusion deadline
09/18/2025
Objection deadline
09/18/2025
Attorney fee
$28,525,000
Class wide damages
$525,000,000
Trades matching type
FIFO

Frequently Asked Questions

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