Zoom Video Communications Inc has agreed to pay tens of millions of dollars to settle a lawsuit over user privacy and “Zoombombing”.

Zoom exploded in popularity last year.

But alongside the surge in popularity, the company came under fire for a range of privacy issues, including the lack of end-to-end encryption on the platform.

The class action lawsuit was filed in March 2020, claiming that Zoom had shared personal data with Facebook, Google and Linkedin.

The video conferencing firm was also accused of failing to prevent hackers from interrupting online meetings, a phenomenon which became known as “Zoombombing”.

Zoom has denied any wrongdoing, but has agreed to pay US$85 million to settle the lawsuit. The company has also agreed to improve its security practices.

“We are proud of the advancements we have made to our platform, and look forward to continuing to innovate with privacy and security at the forefront,” Zoom said in a statement.

If the settlement is approved by a judge, subscribers in the class action would be eligible for 15% refunds on their subscriptions or $25, whichever is larger.

Those who did not pay for a subscription can make a claim for $15.

THE RISE OF THE VIDEO CALL

Zoom surged in popularity last year, as many people became reliant on video conferencing for not only work, but contact with their family and friends.

Zoom had 81,900 customers with more than 10 employees at the start of 2020. By April 2021, that number had since risen to 497,000.

The company’s boss has described 2020 as an “unprecedented year for Zoom”.

Eric Yuan believes we’re likely to see a hybrid work model post-COVID-19, as the “traditional way” no longer works.

“We are energised to help lead the evolution to hybrid work that allows greater flexibility, productivity, and happiness to both in-person and virtual connections,” Yuan says.