NEW YORK–(BUSINESS WIRE)–Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Zoom Video Communications, Inc. (“Zoom” or “the Company”) (NASDAQ: ZM) on behalf of shareholders who purchased Zoom securities between April 18, 2019 and April 6, 2020, inclusive (the ”Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: www.bgandg.com/zm.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Zoom had inadequate data privacy and security measures; (2) contrary to Zoom’s assertions, the Company’s video communications service was not end-to-end encrypted; (3) 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; (4) usage of the Company’s video communications services was foreseeably likely to decline when the foregoing facts came to light; and (5) as a result, the Company’s public statements were materially false and misleading at all relevant times.
On or around April 18, 2019, Zoom conducted its initial public offering (“IPO”), selling 9.91 million shares priced at $46 per share. Then, on March 31, 2020, The Intercept reported that Zoom’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, Reuters 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.” Between March 30 and April 2, 2020, Zoom’s stock price fell $28.95 per share, or 19.19%, to close at $121.93 per share on April 2, 2020.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: www.bgandg.com/zm or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Zoom you have until June 8, 2020 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | [email protected]