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According to media reports, Zoom has agreed to pay $85 million (€71 million) to resolve a class-action privacy lawsuit in the United States. It announced a preliminary settlement this weekend in response to a complaint brought in 2020 alleging that it shared users’ personal information with Facebook, Google, and LinkedIn. As a result, the complaint claimed that it had violated the privacy of millions of people.
Zoom has denied any wrongdoing but has stated that security mechanisms will be tightened. Subscribers would be eligible for 15 percent refunds on their core memberships or compensation of $25, whichever is greater, according to the settlement, which is pending final approval by US District Judge Lucy Koh in San Jose, California. Non-subscribers would be eligible for reimbursement of up to $15.
The corporation proposed establishing a “non-reversionary cash fund of $85 million to pay valid claims, notification and administration costs, service payments to class representatives, and any attorneys’ fees and costs awarded by the court,” according to its settlement plan.
Judge Koh had rejected substantial portions of the complaint in March, but had allowed some contract-based claims to proceed. The firm said in a statement on Sunday that user security was one of its top concerns, and that it takes seriously its users’ confidence in the business.
The class-action participants who paid for a subscription to Zoom, which rose to prominence last year as more people began using it to communicate during the pandemic, earned nearly $1.3 billion in subscriptions.
The plaintiffs’ lawyer claimed that the $85 million was appropriate in light of other legal costs. Zoom has also promised to enhance its security procedures as part of the agreement. Users will be notified when meeting hosts or other participants use third-party apps, and employees will receive security and privacy training. There were also concerns last year about individuals invading private meetings, a practice known as “Zoom bombing.” Since then, the business has made the software significantly safer for users.
Story By: Norvisi Mawunyegah