A US-based remote conferencing services providing company, Zoom Video Communications, has reportedly been sued by one of the company’s shareholders on Tuesday.
The shareholder of the company accused the video-conferencing app of overstating its privacy standards and failing to disclose that the service offered by the company was not end-to-end encrypted.
Shareholder Michael Drieu claimed in a court filing that a string of recent media reports highlighting the privacy flaws in application of Zoom Video Conferencing have led to the company’s stock, which had rallied for several days in the beginning of the year, to plummet.
According to the details, the shares of the Zoom Video Communications closed down about 7.5% at $113.75 on Tuesday. The company has lost nearly a third of its market value since touching record highs in late-March.
Eric Yuan—the Chief Executive Officer of Zoom last week apologized the users of the video-conferencing application, saying that the company had fallen short of the privacy and security expectations of the community, and was taking steps to fix the issues.