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Zoom Hid Security Flaws: Shareholder

Class-action lawsuit also claims unauthorized disclosure of personal info
By Arden Dier,  Newser Staff
Posted Apr 8, 2020 9:50 AM CDT

(Newser) – Shares in videoconferencing app Zoom hit record highs at the end of last month as COVID-19 forced people to work and socialize from home. Then came the drop, coinciding with concerns about "zoombombing" and other security and privacy issues. Another drop in stock price came Tuesday, with shares closing at a third of their market value in late March, as one of Zoom's shareholders filed a class-action lawsuit in federal court. Michael Drieu accuses Zoom of concealing failures in software encryption, including that its service isn't end-to-end encrypted, per Reuters. CEO Eric Yuan, who admitted he "really messed up," has said end-to-end encryption is in the works but it's still months off, per Bloomberg.

Drieu also claims Zoom discloses personal information to third parties, including Facebook, without authorization, per Bloomberg. SpaceX, Tesla, and New York City's Department of Education have stopped using the app, while Taiwan banned all official use of Zoom on Tuesday. Bloomberg cites a Citizen Lab report claiming Zoom used Chinese developers and routed data through Chinese servers, posing a risk to Taiwan, which Beijing claims as part of China. Zoom has said it will no longer route data to Chinese servers for non-Chinese users and only did so mistakenly as it dealt with a "massive increase" in demand. Zoom claims daily meeting participants now number 200 million, up from 10 million at the end of last year. (Read more Zoom stories.)

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