Facts

Plaintiffs, Caitlin Brice, Heddi N. Cundle, Angela Doyle and others, filed class action suits against Zoom Communications Inc., which provides video conferencing services, alleging security and privacy concerns, all of which were consolidated into one action.

PLAINTIFFS' CONTENTIONS: The operative complaint alleged that Zoom's representations about the encryption on its application were misleading based on the definition of the relevant terminology, that Zoom's iOS app shared users' data with Facebook, and that Zoom offered an integration with LinkedIn which allowed Zoom users to view other Zoom users' LinkedIn profiles. Lastly, plaintiffs alleged that Zoom had failed to counteract "Zoombombing," a practice where uninvited third parties would interfere with video-conferences in progress, at times interjecting offensive content.

DEFENDANT'S CONTENTIONS: Zoom denied any liability, but has agreed to a settlement under which it will take additional steps to further protect user privacy.

Result

A cash fund of $85 million will be established with a subset of eligible paid subscribers qualifying for a refund of 15 percent of the money they paid to Zoom or $25 (whichever is greater) while other eligible users will receive $15. Zoom also agreed to over a dozen changes to its practices, designed to improve meeting security, bolster privacy disclosures and safeguard consumer data. For example, Zoom has committed not to reintegrate the Facebook Software Development Kit (SDK) into the Zoom iOS app for a year, and will request that Facebook delete any U.S. user data obtained from the SDK.