SAN FRANCISCO, April 14, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges investors in Zoom Video Communications, Inc. (NASDAQ: ZM) who have suffered significant losses to submit their losses now. A securities class action was recently filed and certain investors may have valuable claims.
Class Period: Apr. 18, 2019 – Apr. 6, 2020
Lead Plaintiff Deadline: June 8, 2020
Sign Up: www.hbsslaw.com/investor-fraud/ZM
Contact An Attorney Now: ZM@hbsslaw.com
844-916-0895
Zoom Video Communications (ZM) Securities Class Action:
The complaint alleges Zoom misled investors about the company’s security and consumer privacy practices. Specifically, the complaint pleads that throughout the Class Period, Defendants misrepresented and concealed that: (1) Zoom’s data privacy and securities measures were inadequate; (2) the company’s video communications service was not end-to-end encrypted; and, (3) as a result, users of Zoom’s services were at an increased risk of having their personal information accessed by unauthorized parties, including Facebook.
According to the complaint, investors began to learn the truth through a series of partial disclosures beginning on Mar. 30, 2020, when media outlets reported that New York’s attorney general had 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 and the company’s sharing of consumer data with Facebook and other entities.
Then, on Apr. 3, 2020, TheStreet and others reported that CEO Eric Yuan and other senior executives dumped over $38 million of their personally-held shares while the company was addressing privacy issues.
Finally, on April 6, 2020, New York City's Department of Education announced that it had banned the use of Zoom in the city's classrooms.
These, and other news reports regarding Zoom’s privacy and security practices, have driven the price of Zoom shares sharply lower.
“We’re focused on investors’ losses and proving 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