Zoom brings in former Facebook security head amid lawsuits, investigations
Enlarge / Security and privacy protip: Don't do your videoconference in the middle of an airport. (credit: hapabapa | Getty Images)
Zoom's meteoric rise to prominence as the go-to teleconference tool of the COVID-19 pandemic has shined a spotlight on every single design flaw, privacy issue, or vulnerability the platform has. Now, the company is scrambling to react to problems while investigations and lawsuits mount.
The company is already facing lawsuits from consumers, but now investors have joined the fray. A shareholder filed a class-action suit (PDF) yesterday in federal court in California, alleging that Zoom violated securities law by covering up known problems with its product.
Publicly traded businesses are required by federal law to disclose issues or events that could materially affect their stock price so that investors can make informed decisions. Basically any time you hear of some catastrophe at a company—for example, Equifax's disastrous 2017 data breach—there's a shareholder suit right after from investors who are angry that they received no warning their shares were about to plummet in value.
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