Zoom sued for overstating, not disclosing privacy, security flaws

Zoom Video Communications Inc was slapped with a class action suit by one of its shareholders on Tuesday, accusing the video-conferencing app of overstating its privacy standards and failing to disclose that its service was not end-to-end encrypted.

Shareholder Michael Drieu claimed in a court filing that a string of recent media reports highlighting the privacy flaws in Zoom's application have led to the company's stock, which had rallied for several days in the beginning of the year, to plummet.

The company's shares closed down about 7.5 percent at $113.75 on Tuesday. They have lost nearly a third of their market value since touching record highs in late-March.

Zoom Chief Executive Officer Eric Yuan last week apologized to users, saying the company had fallen short of the community's privacy and security expectations, and was taking steps to fix the issues.<...