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Zoom sued by its shareholder for fraud around security lapses

By Liu Hongzuo - on 8 Apr 2020, 1:37pm

Zoom sued by its shareholder for fraud around security lapses

In the latest spate of security issues with Zoom, the popular video-conferencing app for businesses was sued by its shareholder.

Investor Michael Drieu filed a class-action suit claiming that the company's publicised security flaws have dented its stock price, despite its 67% increase from last year. Earlier this week (7 April 2020), Zoom was accused of concealing the truth about its security shortcomings, with a lawsuit filed in San Francisco's federal court.

This series of events follows another potential lawsuit by a user, who claimed that the video-conferencing app is illegally disclosing personal information without proper notice to third-parties, such as Facebook. The user lawsuit was filed on 30 March 2020 in San Jose's federal court.

Previously, Zoom was under fire for misleading marketing, claiming that its app offered end-to-end encryption when it used transport encryption instead. Other unfortunate security lapses surfaced, such as its Zero-day bugs that gave root access to a system. Zoom had given itself 90 days to fix its privacy and security issues last week (3 April 2020).

Source: Bloomberg, The Straits Times