NEW YORK--(BUSINESS WIRE)--Rosen Law Firm, a global investor rights law firm, announces it is investigating 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.
On Mar. 30, 2020, the New York Times reported that New York’s attorney general sent a letter to Zoom, questioning the company’s security measures, including actions taken to remedy a reported flaw allowing hackers to take over Zoom webcams. According to the NYT, the New York attorney general also challenged the company’s sharing of consumer data with Facebook and other entities.
Then, on Apr. 2, 2020, Bloomberg reported “[on]line trolls have been sneaking into web meetings and disrupting them with profanities and pornography for at least the better part of the last month.”
This news has driven the price of Zoom shares sharply lower.
Finally, recent regulatory filings reflect that CEO Eric Yuan and several other senior Zoom executives dumped over $38 million of their personally-held shares in the midst of an investigation into the company’s handling of privacy issues. Publications including TheStreet have questioned the usual and suspicious timing and scope of these sales.
Rosen Law Firm is preparing a class action lawsuit to recover losses suffered by Zoom investors. If you purchased shares of Zoom please visit the firm’s website at http://www.rosenlegal.com/cases-register-1833.html to join the class action. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at pkim@rosenlegal.com or cases@rosenlegal.com.
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Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 3 each year since 2013. Rosen Law Firm has secured hundreds of millions of dollars for investors.
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