Home / SmartTech / Zoom sued by shareholder for "overrating" security claims – TechCrunch

Zoom sued by shareholder for "overrating" security claims – TechCrunch

Zoom received another class action lawsuit – this time from one of his shareholders who said he lost money after the company "overvalued" its security measures, causing the stock price to become a tank.

The video conferencing giant has seen a daily increase from 10 million to 200 million users since the start of the coronavirus pandemic that forced large parts of the world to stay and work from home. As its popularity grew, the company also faced a growing number of security and data protection issues, including the claim that Zoom was not consistently encrypted as announced.

Zooms later approval dropped the company's share price by almost 20 percent.

Shareholder Michael Drieu, who filed the suit with a California federal court on Tuesday, said he and others had "suffered significant losses and damage" as a result. According to the complaint, Drieu bought 50 shares at $ 1

49.50 but lost when he sold the shares a week later at $ 120.50 per share.

Zoom did not respond to a request for comment.

This is the last class action lawsuit against Zoom in the past few weeks. Zoom was hit with a different suit last month after finding that Zoom's iOS app shared data with Facebook – even when users didn't have a Facebook account .

Zoom has doubled its efforts to improve its image on the Internet. Zoombombing was coined last week, including a promise to improve encryption efforts and change default settings to prevent trolls and intruders from zooming in without permission Access calls. The security issues have resulted in New York schools banning zoom in favor of Microsoft teams. The Taiwanese government also banned its authorities from using the app.

Only today did former Facebook security chief Alex Stamos say he came to Zoom as a consultant. Zoom also said it enlisted security experts and executives to advise on the company's security strategy.

Source link