(CN) — Zoom, the video teleconferencing company that became ubiquitous during the pandemic, has settled a lawsuit related to privacy concerns for $85 million.
In the settlement announced Sunday, Zoom did not admit wrongdoing related to the central claims that the company shared the personal information of users with other internet media companies like LinkedIn, Facebook and Google, but agreed it needed to take additional steps to protect user privacy.
“The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us,” the company said in its statement. “We are proud of the advancements we have made to our platform, and look forward to continuing to innovate with privacy and security at the forefront."
According to the settlement documents, paid subscribers will qualify for refunds of $25, while free users will receive $15. The settlement must be approved by U.S. District Judge Lucy Koh.
The lawsuit not only contended Zoom shared private information with other Silicon Valley companies but also failed to counteract “Zoombombing,” where hackers could interfere with videoconferences in progress.
Hackers would sometimes interject pornography or racist messages during Zoom calls at the outset of the remote working craze that took over the United States after lockdown policies proliferated in March and April of last year.
Attorney Tina Wolfson, one of the plaintiff's attorneys with Ahdoot Wolfson, praised the settlement.
“In the age of corporate surveillance, this historic settlement recognizes that data is the new oil and compensates consumers for unwittingly providing data in exchange for a 'free' service,'" Wolfson said in a statement. "It also compensates those who paid for a product they did not receive and commits Zoom to changing its corporate behavior to better inform consumers about their privacy choices and provide stronger cybersecurity.”
The company’s stock price nearly quadrupled last year as it saw massive adoption of its programs when city councils, school boards and companies large and small retreated to their homes and continued doing business with social distance in mind. The proceedings of the federal court in which the Zoom case was handled were mostly conducted via Zoom, as have weddings, funerals, happy hours and even signature events of both presidential campaigns.
This spike in usage also concentrated attention on Zoom's privacy practices and whether these vital meetings were truly secure.
Another hearing is slated to take place in October.
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