NEW YORK, NY / ACCESSWIRE / May 29, 2020 / Labaton Sucharow LLP, a leading 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 devices and locations.
On April 22, 2020, in a blog post, Zoom announced that its "user" base had grown to 300 million. The videoconferencing app had just 10 million users in December, before the coronavirus outbreak forced millions of people to work from home, but its growth has increased scrutiny on its security and privacy issues.
The numbers came from CEO Eric Yuan's update on its 90-day security plan. Last month, Yuan said the company would stop adding new features to Zoom so it can devote its resources to addressing issues like "Zoombombing," when uninvited attendees enter your meeting. On this news, shares of Zoom rocketed to an all-time high of $181.50 per share.
Now, the company is backtracking. The company now says it has "300 million daily meeting participants," a different metric that counts people for every Zoom meeting they attend in a day. The Verge, an online publication, spotted the change. After the publication reached out to the company, Zoom on Wednesday, April 29, added an edit note to its blog post, calling the error an oversight.
"We are humbled and proud to help over 300 million daily meeting participants stay connected during this pandemic, said a Zoom spokesperson in an emailed statement on Thursday. "In a blog post on April 22, we unintentionally referred to these participants as 'users' and 'people.' When we realized this error, we adjusted the wording to 'participants.' This was a genuine oversight on our part."
On this news, Zoom stock plummeted in large volume
If you would like to learn more about these allegations, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact David J. Schwartz, Esq. of Labaton Sucharow LLP, at (800) 321-0476, or via email at recover.labaton.com
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 www.labaton.com.
Contact:
David J. Schwartz
(800) 321-0476
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SOURCE: Labaton Sucharow LLP