INVESTIGATION ALERT: Labaton Sucharow, a Nationally Ranked Securities Firm, Announces Investigation of Zoom Video Communications, Inc. (ZM) and Strongly Encourages Investors with Losses to Contact the Firm


New York, New York–(Newsfile Corp. – April 6, 2020) – Labaton Sucharow LLP, a leading and award winning investor rights law firm, announces it is developing a proprietary investigation concerning potential securities claims on behalf of shareholders of Zoom Video Communications, Inc. (NASDAQ: ZM) resulting from allegations that Zoom may have issued materially misleading business information to the investing public.

Zoom provides a video-first communications platform that connects people through video, phone, chat, and content sharing and enables face-to-face video experiences for thousands of people in a single meeting across disparate devices and locations.

On March 26, 2020, the online news magazine Motherboard reported that, “[w]hat the company and its privacy policy don’t make clear is that the iOS version of the Zoom app is sending some analytics data to Facebook, even if Zoom users don’t have a Facebook account, according to a Motherboard analysis of the app.”

On March 30, 2020, news sources reported that the New York Attorney General’s office issued a letter citing, “concern[s] that Zoom’s existing security practices might not be sufficient to adapt to the recent and sudden surge in both the volume and sensitivity of data being passed through its network. . . . While Zoom has remediated specific reported security vulnerabilities, we would like to understand whether Zoom has undertaken a broader review of its security practices.”

Also on March 30, 2020, the FBI sent out a release warning that it has received multiple reports of conferences being disrupted by pornographic and/or hate images and threatening language.

Within the FBI Boston Division’s area of responsibility (AOR), which includes Maine, Massachusetts, New Hampshire, and Rhode Island, two schools in Massachusetts reported the following incidents:

  • In late March 2020, a Massachusetts-based high school reported that while a teacher was conducting an online class using the teleconferencing software Zoom, an unidentified individual(s) dialed into the classroom. This individual yelled a profanity and then shouted the teacher’s home address in the middle of instruction.
  • A second Massachusetts-based school reported a Zoom meeting being accessed by an unidentified individual. In this incident, the individual was visible on the video camera and displayed swastika tattoos.

On April 4, The Wall Street Journal reported “Zoom had previously advertised [end-to-end encryption], but security experts discovered the underlying technology provided a lesser level of data protection.” Zoom Chief Executive Officer Eric Yuan admitted that, “[t]he full encryption feature won’t be ready for a few months. . . . I really messed up.”

On this news, Zoom stock has fallen from an all-time high of $164.94 to $121.93 per share, losing nearly 25% on extraordinary volume.

If you are a shareholder or option holder that suffered losses in Zoom, and wish to participate, learn more, or discuss the issues surrounding the investigation, please contact David J. Schwartz using the toll free number (800) 321-0476 or via email at or


About the Firm

Labaton Sucharow LLP is one of the world’s leading complex litigation firms representing clients in securities, antitrust, corporate governance and shareholder rights, and consumer cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at