As expected, Zoom has problems. Yesterday, one of the company's shareholders filed a lawsuit in the US for "overestimating privacy standards and concealing that its service was not end-to-end encrypted".
According to one Publication of Reuters, shareholder Michael Drieu said in court that the latest media revelations surrounding these privacy issues began to trouble the company's stock.
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 which asked people not to use it platform.
Many companies and organizations have banned it Zoom application. SpaceX sent an internal document to its employees asking them not to use the app for internal meetings. Earlier this week, New York City 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 it confidence them about how the company operates, and it will likely be very difficult for the popular app to rebuild things.
