As expected, Zoom has problems. Yesterday, one of the company's shareholders filed a lawsuit in the US for "overestimating privacy standards and hiding the fact that its service was not end-to-end encrypted."
According to a Publication According to Reuters, shareholder Michael Drieu told the court that the latest media revelations about these privacy issues began to pose problems for the company's share.
Through a general chaos in the market brought by his pandemic COVID-19, the share price for Zoom Video, the company behind the app, rose from about $ 70 at the beginning of the year to $ 159,56 on March 23.
Last week, after several reports highlighting the application's security vulnerabilities, Zoom CEO Eric Yuan apologized for the company's mistakes. He also mentioned that the company will stop developing new features the next 90 days to focus on security and privacy.
One of the main issues that has made the application weird is "Zoombombing", a practice used by pranksters to enter meetings, displaying pornographic material.
Last month, the FBI released a warning asking people not to use the platform.
Many companies and organizations have banned the Zoom application. SpaceX sent an internal document to its employees asking them not to use the application for internal meetings. Earlier this week New York stopped using the app in classrooms. Taiwan also does not allow government officials to use the platform.
This lawsuit shows that those involved have lost confidence in how the company operates, and it will probably be very difficult for the popular app to rebuild things.