PHILADELPHIA, April 17, 2020 /PRNewswire/ -- Berger Montague is investigating securities fraud claims against Zoom Video Communications, Inc. ("Zoom" or the "Company") on behalf of all purchasers of Zoom common stock (NASDAQ: ZM) between April 18, 2019 and April 6, 2020 (the "Class Period").
If you purchased Zoom shares, have information, would like to discuss this investigation, or have any questions concerning your rights or interests, please contact our attorneys Benjamin Galdston, Esq. at (619) 489-0300 or Andrew Abramowitz, Esq. at (215) 875-3015, or visit www.bergermontague.com/zoom.
According to the complaint, Zoom and its senior management misled investors regarding the measures the Company took to protect its users' privacy and security. The suit accuses Defendants of concealing the fact that: (1) Zoom's data privacy and security measures were inadequate; (2) its video communications service was not end-to-end encrypted, as it told investors it was; 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.
The truth about the Company's security capabilities came to light through a series of partial disclosures beginning on March 27, 2020, when news reports surfaced that user data was being sent, without authorization, from Zoom's video-conferencing platform to Facebook. Then, on March 30, 2020, media outlets reported that New York's attorney general had sent a letter to Zoom, questioning the company's security measures, including a reported flaw allowing hackers to take over users' webcams. Additional negative news followed, including reports that, contrary to the Company's representations, Zoom was not "end-to-end encrypted."
Between March 27, 2020 and April 2, 2020, shares lost nearly 20% of their value, falling $29.77 per share.
If you purchased Zoom common stock during the Class Period, you may seek Court appointment as lead plaintiff to represent other injured investors in a class action. The lead plaintiff appointment deadline is June 8, 2020. You do not need to be a lead plaintiff to share in any potential Class recovery.
Whistleblowers: Persons with non-public information regarding Zoom Video Communications, Inc. should consider their options to help Berger Montague's investigation or take advantage of the SEC Whistleblower program. Under this program, whistleblowers who provide original information may receive rewards totaling up to thirty percent (30%) of successful recoveries obtained by the SEC. For more information, contact us.
Berger Montague, with offices in Philadelphia, Minneapolis, Washington, D.C., and San Diego, has been a pioneer in securities class action litigation since its founding in 1970. Berger Montague has represented individual and institutional investors for five decades and serves as lead counsel in courts throughout the United States.
Benjamin Galdston, Shareholder
Andrew Abramowitz, Senior Counsel
SOURCE Berger Montague