Zoom has agreed to pay $85 million — and to bolster its security practices — to settle a lawsuit that had claimed Zoom violated users’ privacy rights by sharing their personal data with Facebook, Google and LinkedIn, and by failing to stop Zoombombing.
The preliminary settlement also requires tougher security measures, such as warning about participants with third-party apps and offering special privacy-oriented training to Zoom staff.
Judge Lucy Koh said the company was largely protected against zoombombing claims thanks to the Communications Decency Act’s Section 230 safeguards against liability for users’ actions.
The settlement could also lead to payouts if the lawsuit achieves a proposed class action status, but don’t expect a windfall. Subscribers would receive a refund of either 15 percent or $25, whichever was larger, while everyone else would receive as much as $15. Lawyers intended to collect up to $21.25 million in legal costs.