Zoom has agreed to settle a class-action US privacy lawsuit that claimed the video conferencing company breached the privacy of millions of users by sharing personal data with Facebook, Google and LinkedIn.
It also accused Zoom of misstating that it offers end-to-end encryption and for failing to prevent hackers from “zoombombing” sessions.
Zoombombing is where outsiders hijack Zoom meetings and display pornography, use racist language or post other disturbing content.
Zoom denied any wrongdoing but did agree to improve its security practices and agreed to pay $US85 million ($115 Million).
The preliminary settlement, which also includes a provision that Zoom will give its staff specialized training in data handling and privacy, is still subject to approval by US District Judge Lucy Koh in San Jose, California.
Subscribers in the proposed class action would be eligible for 15% refunds on their core subscriptions or $25, whichever is larger, while others could receive up to $15.
A Zoom spokesman said they prioritized users’ privacy and security.
The company’s user growth has grown sixfold since the COVID-19 pandemic forced many offices to close due to health risks, and companies shifted to working online from home.