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Zoom Reaches $85 Million Settlement in "Zoombombing" Case

"Zoombombing" happens when an outsider is able to gain access to a video chat room they weren't invited to.

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Zoom has agreed to pay $85 million to settle a lawsuit that accuses the remote-work-enabling behemoth of not only violating users’ privacy, but enabling “zoombombing,” according to Reuters. (“Zoombombing” happens when an outsider is able to gain access to a video chat room they weren’t invited to.) 

Bloomberg | Getty Images

Reuters reports that Zoom also agreed to bolster its security practices. The lawsuit accused Zoom of sharing personal data with other companies, like Facebook, Google, and LinkedIn. The company agreed to alert users when meeting hosts or other participants use third-party apps in meetings and train employees on privacy and data handling.

In agreeing to settle, Zoom denied wrongdoing.

Related: How Zoom Won 2020 by Meeting a Surge of Demand

Approval for the preliminary settlement, filed on Saturday, is up to U.S. District Judge Lucy Koh. Users in the proposed class action would be eligible for 15% refunds on their Zoom subscriptions or $25, depending on which is the larger sum. Others could get up to $15. 

"The privacy and security of our users are top priorities for Zoom, and we take seriously the trust our users place in us,” the company said in a statement to Reuters. 

The legal commotion isn’t slowing down other elements of the company’s business: At the end of July, Zoom announced Zoom Apps and Zoom Events, which blend third-party apps into meetings and facilitate a variety of interactive virtual events, respectively.