Zoom sued by one of its own shareholders for allegedly covering up its security flaws

AP Photo/Mark Lennihan

Zoom CEO Eric Yuan.

• Zoom is reportedly being sued by one of its own shareholders for allegedly hiding security flaws in its app.
• Bloomberg reports that shareholder Michael Drieu filed a class-action lawsuit Tuesday in a San Francisco federal court, claiming revelations about Zoom's deficiencies affected its stock price.
• The videoconferencing service has come under fire this month over multiple security-related issues, despite seeing a surge in use amid the coronavirus crisis.
• These issues include concerns over how it encrypts user data; the potential theft of user data; leaked email addresses; and calls and encryption keys being routed through China.
• Visit Business Insider's homepage for more stories.

Zoom is being sued by one of its own shareholders for allegedly hiding security and privacy flaws in its app.

Bloomberg reported that shareholder Michael Drieu filed a class-action lawsuit Tuesday in a San Francisco federal court, claiming revelations about Zoom's deficiencies have affected its stock price.

Drieu accused the company of overselling its privacy standards and failing to disclose that calls are not end-to-end encrypted.

The suit comes despite Zoom witnessing an unprecedented increase in new users amid the coronavirus crisis.

It's a double-edged sword, though, as Zoom has become embroiled in multiple security-related controversies this month, likely as a result of the increased public scrutiny.

Zoom's stock price hit a high of $159.56 towards the end of March, but the price has fallen some 28% since then.

Issues include concerns over how the service encrypts user data; the potential theft of user data; leaked email addresses; and calls and encryption keys being routed through China.

Multiple entities have banned their staff from using Zoom, including Elon Musk's SpaceX and the Taiwanese government.

Eric Yuan, Zoom's CEO, admitted on Friday the firm had "really messed up" over security while insisting Zoom was "looking into each and every one of [the concerns raised about Zoom] and addressing them as expeditiously as we can," in a lengthy public statement on the company's website.

Zoom did not immediately respond to Business Insider's request for comment.

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