Zoom Video Communications Shareholder Suit Filed On Behalf Zoom Investors Who Bought, Or Otherwise Acquired, Zoom Securities Between April 18, 2019 and April 6, 2020, Both Dates Inclusive – ZM Investors Who Suffered Losses Encouraged To Contact Kehoe Law Firm, P.C.
Kehoe Law Firm, P.C. is making investors aware that on April 7, 2020, a class action lawsuit was filed in United States District Court, Northern District of California, on behalf of Zoom Video Communications, Inc. (“Zoom” or the “Company”) (NASDAQ: ZM) investors who purchased, or otherwise acquired, Zoom securities between April 18, 2019 and April 6, 2020, both dates inclusive, (the “Class Period”), seeking to recover damages caused by the Zoom Defendants’ alleged violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
According to the class action complaint:
Throughout the Class Period, [Zoom] Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, [Zoom] Defendants made false and/or misleading statements and/or failed to disclose that: (i) Zoom had inadequate data privacy and security measures; (ii) contrary to Zoom’s assertions, the Company’s video communications service was not end-to-end encrypted; (iii) as a result of all the foregoing, users of Zoom’s communications services were at an increased risk of having their personal information accessed by unauthorized parties, including Facebook; (iv) usage of the Company’s video communications services was foreseeably likely to decline when the foregoing facts came to light; and (v) as a result, the Company’s public statements were materially false and misleading at all relevant times.
The truth about the deficiencies in Zoom’s software encryption began to come to light as early as July 2019. However, due in large part to the Company’s obfuscation, it was not until the COVID-19 pandemic in March and April of 2020, with businesses and other organizations increasingly relying on Zoom’s video communication software to facilitate remote work activity as governments increasingly implemented shelter-in-place orders, that the truth was more fully laid bare in a series of corrective disclosures. As it became clear through a series of news reports and admissions by the Company that Zoom had significantly overstated the degree to which its video communication software was encrypted, and organizations consequently prohibited its employees from utilizing Zoom for work activities, the Company’s stock price plummeted, damaging investors.
As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages. [Emphasis added.]
Zoom investors who purchased, or otherwise acquired, ZM securities during the Class Period and suffered losses are encouraged to contact either Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, [email protected], [email protected], or John Kehoe, Esq., (215) 792-6676, Ext. 801, [email protected], to discuss the class action lawsuit or potential legal claims.