Zoom users of two groups are eligible to get paid up to $25 each after the company reached a settlement in a class-action lawsuit to pay $85 million over alleged privacy and security issues.
In a development, Zoom agreed to pay $85 million while continuing to deny the allegations and any liability.
Following a settlement in a class-action lawsuit, Zoom will pay up to $25 to its users who have been divided into two groups to file a claim.
Subscribers in the proposed class action would be eligible for 15% refunds on their core subscriptions or $25, whichever is larger, while others could receive up to $15.
A user who had used the videoconferencing app before July is eligible to get paid.
According to The Verge, if a user had paid for a Zoom Meetings App subscription between March 30th, 2016, and July 30th, 2021, a claim can be filed for $25 or 15 percent of the payment for that subscription (excluding optional add-ons). The user is entitled to whichever is greater.
The second group for filing the claim is created for the users who had “registered, used, opened, or downloaded the Zoom Meeting App” between March 30th, 2016, and July 30th, 2021. The users can file a claim for $15.
However, the users with an “Enterprise-Level Account” or a government account were excluded from the settlement.
The claims must be submitted by March 5, 2022, by completing the claim form online or via mail. The payment amounts “may increase or decrease” depending on how many people submit claims.
A final approval hearing is scheduled for April 7, 2022, after the court had preliminarily approved the settlement.
The lawsuit had been filed against Zoom for allegedly sharing users’ information with third parties in an unauthorized manner through SDKs and marketplace apps.
It failed to prevent “unwanted meeting disruptions by third parties” (aka “Zoombombing”), and that Zoom misrepresented its end-to-end encryption (which the company has since fixed).
Zoombombing is where outsiders hijack Zoom meetings and display pornography, use racist language or post other disturbing content.
Zoom’s customer base has grown sixfold since the COVID-19 pandemic forced more people to work from home.
The company had 497,000 customers with more than 10 employees in April 2021, up from 81,900 in January 2020. It has been said user growth could slow or decline as more people get vaccines and return to work or school in person.