SAN FRANCISCO, April 03, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in Zoom Video Communications, Inc. (NASDAQ: ZM) who have suffered significant losses to submit their losses now. The firm is investigating possible securities law violations.
Relevant Holding Period: Before Apr. 2, 2020
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Zoom Video Communications (ZM) Investigation:
The investigation focuses on whether Zoom misled investors about the company’s security and consumer privacy practices.
On Mar. 30, 2020, the New York Times reported that New York’s attorney general sent a letter to Zoom, questioning the company’s security measures, including actions taken to remedy a reported flaw allowing hackers to take over Zoom webcams. According to the NYT, the New York attorney general also challenged the company’s sharing of consumer data with Facebook and other entities.
Then, on Apr. 2, 2020, Bloomberg reported “[on]line trolls have been sneaking into web meetings and disrupting them with profanities and pornography for at least the better part of the last month.”
This news has driven the price of Zoom shares sharply lower.
Finally, recent regulatory filings reflect that CEO Eric Yuan and several other senior Zoom executives dumped over $38 million of their personally-held shares in the midst of an investigation into the company’s handling of privacy issues. Publications including TheStreet have questioned the usual and suspicious timing and scope of these sales.
“We’re focused on investors’ losses and whether Zoom misled investors about the company’s security and privacy controls and procedures,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
Whistleblowers: Persons with non-public information regarding Zoom should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email ZM@hbsslaw.com.
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Contact:
Reed Kathrein, 844-916-0895