Case: Zoom Video Communications, Inc.
Venue: NDCA
Class Period: 4/18/2019 - 4/6/2020
Lead Plaintiff Deadline: 6/8/2020
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NEW YORK, NY – April 21, 2020 – Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Zoom Video Communications, Inc. (“Zoom” or the “Company”) (NASDAQ: ZM), a company that provides a video communications platform application.  A complaint has been filed against the Company and certain officers of the Company on behalf of investors that purchased or otherwise acquired Zoom securities between April 18, 2019 and April 6, 2020.

On or about April 18, 2019, Zoom conducted its initial public offering (“IPO”) by selling 9.9 million Zoom shares at the price of $36 per share.

According to the action, the truth about the deficiencies in Zoom's software encryption began to come to light as early as July 2019.  However, due in large part to the Company's obfuscation, it was not until the COVID-19 pandemic in March and April of 2020, with businesses and other organizations increasingly relying on Zoom's video communication software to facilitate remote work activity as governments increasingly implemented shelter-in-place orders, that the truth was more fully laid bare in a series of corrective disclosures.  As it became clear through a series of news reports and admissions by the Company that Zoom had significantly overstated the degree to which its video communication software was encrypted, and organizations consequently prohibited their employees from utilizing Zoom for work activities, the Company's stock price plummeted, damaging investors.  

Indeed, the truth was revealed through a series of corrective disclosures, including the announcement of investigations by the Federal Bureau of Investigation (FBI), the New York Attorney General and the Connecticut Attorney General, as well as bans on using Zoom by SpaceX and New York City’s Department of Education, among others. 

The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies.  Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Zoom had inadequate data privacy and security measures; (ii) contrary to Zoom's assertions, the Company's video communications service was not end-to-end encrypted; (iii) 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; (iv) usage of the Company's video communications services was foreseeably likely to decline when the foregoing facts came to light; and (v) as a result, the Company's public statements were materially false and misleading at all relevant times.

If you purchased Zoom securities, you may move the court no later than June 8, 2020 to serve as a lead plaintiff for the purported class.  You need not seek to become a lead plaintiff in order to share in any possible recovery.  If you would like to discuss the complaint or our investigation, please contact us by emailing This e-mail address is being protected from spambots. You need JavaScript enabled to view it or by calling 646-315-9003.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, your rights, or your interests, please contact: 

Frederic S. Fox
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
(800) 290-1952
(646) 315-9003
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Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
1999 Harrison Street, Suite 1560
Oakland, California 94612
(415) 772-4704
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