A lawsuit was filed on behalf of investors in Zoom Video Communications, Inc. (NASDAQ: ZM) shares over alleged securities laws violations.
San Diego, CA -- (SBWIRE) -- 04/27/2020 -- An investor, who purchased shares of Zoom Video Communications, Inc. (NASDAQ: ZM), filed a lawsuit over alleged Securities Laws violations by Zoom Video Communications, Inc.
Investors who shares of Zoom Video Communications, Inc. (NASDAQ: ZM) should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
On March 22, 2019, Zoom Video Communications, Inc filed a registration statement on Form S-1 with the SEC in connection with its initial public offering ("IPO"), which, after several amendments, was declared effective by the SEC on April 17, 2019.
On April 18, 2019, Zoom Video Communications, Inc filed a prospectus on Form 424B4 with the SEC in connection with its IPO, which purported to provide information necessary for investors to consider before partaking in its IPO and purchasing the Company's newly publicly-issued stock.
Then, on March 31, 2020,it was reported that Zoom Video Communications, Inc's video conferencing software is not, in fact, end-to-end encrypted between meeting participants, contrary to the Company's suggestion.
Then, on April 1, 2020, post-market, citing review of an internal memo, it was reported that Space Exploration Technologies Corp. ("SpaceX") had banned its employees from using Zoom's video conferencing software, due to "significant privacy and security concerns."
The plaintiff claims that between April 18, 2019 and April 6, 2020, the Defendants made false and/or misleading statements and/or failed to disclose that Zoom had inadequate data privacy and security measures, that contrary to Zoom's assertions, the Company's video communications service was not end-to-end encrypted, that 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, that usage of the Company's video communications services was foreseeably likely to decline when the foregoing facts came to light, and that as a result, the Company's public statements were materially false and misleading at all relevant times.
Those who purchased shares of Zoom Video Communications, Inc. (NASDAQ: ZM) have certain options and should contact the Shareholders Foundation.
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About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, , which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigation, and/or settlements are not filed/reached and/or related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.