Shareholder Sues Zoom Over Security Flaws
Zoom Video Communications (NASDAQ: ZM), the company behind a video conferencing platform that's gained a lot of attention during the COVID-19 pandemic, is getting hit with a lawsuit from one of its investors.
First spotted by Bloomberg, the complaint, which was filed in San Francisco federal court this week, accuses Zoom of hiding flaws in its app that led to privacy and security breaches.
Investor Michael Drieu accused top executives of the company of hiding shortcomings having to do with encryption and the sharing of personal information with Facebook (NASDAQ: FB) and other third parties. The investor argued the revelations about the flaws in Zoom resulted in the stock price taking a hit. That's even as shares are up nearly 75% year-to-date.
Source Fool.com
