San Francisco, US, Aug 1 (EFE).- United States company Zoom Video Communications, whose video conferencing program became the most popular app during the coronavirus pandemic, has agreed to an out-of-court settlement to pay $85 million for a class action lawsuit that claims it violated users’ privacy rights.
The lawsuit, filed last year, accuses Zoom of violating laws protecting users’ privacy by sharing their data with tech giants, including Google, Facebook and LinkedIn.
In addition, the plaintiffs also say that Zoom did not do enough to protect users from “Zoombombing,” in which hackers disrupted meetings, and which was especially prevalent during the first months of the Covid-19 pandemic.
According to the preliminary settlement, filed in San Jose on Saturday and which requires approval from US District Judge Lucy Koh, the parties accepted an agreement whereby each user who has been affected by the alleged violation of their rights would receive between $15 and $25, without having to be one of the original plaintiffs.
The rest of the money will go towards paying administration costs and attorneys’ fees.
The video conferencing platform experienced unprecedented growth at the start of the pandemic with the transition to remote work and education, going from being a tool used primarily by college students to becoming ubiquitous in virtually all sectors.
In mid-July, the San Jose-based firm signed an agreement to acquire Five9, a leading provider of cloud contact center software, in an all-stock deal valued at $14.7 billion and expected to close in 2022.
Under the agreement, Five9 shareholders will receive 0.5533 shares of Class A common stock of Zoom for each share of Five9, which corresponds to a price of $200.26 per Five9 common stock, Zoom announced.
The boards of directors of Zoom and Five9 have already approved the transaction. EFE