Zoom has been hit with a class-action lawsuit by one of its shareholdersPublished by Terence Mahier | Source
One month ago, we introduced you to the video conferencing company Zoom as a"plague stock", a stock that could benefit from the coronavirus outbreak 😷
190M new daily users later... Zoom just got hit with a class-action lawsuit by one of its shareholders on the basis that the company failed to disclose issues with its platform’s privacy and security ⛔️
Multiple concerns have arisen including "zoombombing" attacks, data sharing with Facebook and rerouting of calls through China, eventually leading SpaceX & New York schools to ban the use of Zoom.
Zoom shares have fallen in recent days, but are still up 67% this year 🤔
People have shared stories of “zoombombing” attacks, where some meeting participants hijack a call to bombard others with toxic and sometimes pornographic content...
Zoom’s CEO, Eric Yuan, has apologized for the debacle, admitting in a blog post last week that “we have fallen short of the community’s — and our own — privacy and security expectations.”
Zoom stock fell nearly 3% in pre-market trading following news of the class action suit but seemed to recover very quickly 🤔
The class-action lawsuit seems to have had NO effect on the rebound of Zoom after the complicated past 2 weeks. In other words, the market had already "priced" the security breaches and does not take seriously the shareholder filing for the lawsuit.
Zoom jumped almost 10% yesterday during the day after going back to more modest highs. The good move yesterday would have been to go long and close the position in the middle of the day 💪
- Newspill Team 💊
09-Apr 03:11 (Eastern Time)
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