The challenges facing Zoom continue to mount, as the company now faces an investor lawsuit and more organizations ban the use of the video meeting app due to privacy and security concerns. The company also upped efforts to improve its security and privacy practices by hiring Facebook’s former CSO as a consultant. 

Zoom has seen a surge in use in recent weeks as self isolation in response to the pandemic ramps up the demand for video software. As its popularity has boomed – both for business and personal use – and the company’s stock price rocketed, Zoom has come under pressure on a number of fronts. 

On Tuesday, shareholder Michael Drieu filed suit in a California federal court, alleging that Zoom “significantly overstated” the degree to which its platform is encrypted, failing to disclose these “deficiencies” to shareholders.

Zoom admitted on April 1 to a “discrepancy” in its definition of end-to-end encryption from the commonly accepted definition. Drieu claims he and other shareholders have suffered “significant losses and damages” due to a drop in Zoom’s share price after the admission.

It is the second recent lawsuit Zoom faces; the company is also being sued in California for allegedly sharing user data with Facebook. Zoom said in a March 29 blog post that it “has never sold user data in the past and has no intention of selling users’ data going forward,” and would remove the Facebook SDK (software development kit) from its iOS client. That SDK, it said, was responsible for collecting device data.

More organizations ban Zoom

The list of organizations that have banned use of Zoom on security and privacy grounds has also grown. 

Copyright © 2020 IDG Communications, Inc.

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