Zoom Proposes Settlement for Class-Action Lawsuit

Remote meeting software-giant Zoom became a household name over the course of the pandemic.  Zoom, both the company and the software, have been around longer than most people would think.  Zoom Video Communications, the company, was founded in 2011 and Zoom, the software, was initially released in 2013.  A proposed class-action settlement would compensate every person who used Zoom between March 30, 2016 and July 30, 2021 with $15.  Zoom subscribers would be eligible for the greater of $25 or 15 percent of their subscription fees during that time.  The proposed settlement amount is $85 million, so payouts may change based on how many Zoom users make a claim.  The company would also be required to improve security and data protection.

The class-action lawsuit stems from a false claim the company made about encryption.  Zoom had made claims that their software featured end-to-end encryption in order to comply with the Health Insurance Portability and Accountability Act (HIPAA).  In practice, only customers utilizing a specific Zoom product were receiving that level of protection.  The lack of purported end-to-end encryption came to light in March 2020, just when the pandemic began forcing many employees to work remotely.

The lack of true end-to-end encryption and a reliance on Facebook and Google meant a lot of personal data was sent unencrypted over the Internet.  The class-action lawsuit accuses Zoom of willfully misrepresenting its security protocols and misleading consumers, a clear violation of product liability law.  Though some may think that personal injury attorneys can only pursue companies for dangerous manufactured goods, product liability law also protects consumers from damages or injuries caused by intangible software.

See the full news story here.

The Law Offices of Scott Warmuth can help injured consumers pursue negligent corporations for the design, manufacturing, or advertising of any damaged or faulty product.  We provide free consultations at 888-517-9888, so call us today.  There is no risk in pursuing a claim with a no recovery, no fee guarantee.

Leave a Comment