• Zoom is said to be facing a lawsuit by a shareholder accusing the company of hiding security flaws in its app.
  • Bloomberg reports that the shareholder Michael Drieu filed a class-action lawsuit Tuesday in a San Francisco federal court, claiming revelations about Zoom’s deficiencies affected its stock price.
  • The videoconferencing service has come under fire over multiple security-related issues in recent weeks while seeing a surge in use amid the coronavirus crisis.
  • These issues include concerns over the way it encrypts user data; the potential theft of user data; leaked email addresses; and calls and encryption keys being routed through China.
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Zoom is being sued by a shareholder accusing the company of hiding security and privacy flaws in its app.

Bloomberg reported that the shareholder, Michael Drieu, filed a class-action lawsuit Tuesday in a San Francisco federal court, claiming revelations about Zoom’s deficiencies had affected its stock price.

Drieu accused the company of overselling its privacy standards and failing to disclose that calls were not end-to-end encrypted.

The suit comes with Zoom witnessing an unprecedented increase in users amid the coronavirus crisis.

The new popularity has come with added public scrutiny that has seen Zoom embroiled in multiple security-related controversies in recent weeks.

Zoom's stock price hit a high of $159.56 toward the end of March, but the price has fallen some 28% since then.

Issues include concerns over the way the service encrypts user data; the potential theft of user data; leaked email addresses; and calls and encryption keys being routed through China.

Multiple entities have barred their workers from using Zoom, including Elon Musk's SpaceX and the Taiwanese government.

Zoom CEO Eric Yuan told The Wall Street Journal last Friday that he had "really messed up," and in a lengthy public statement published on the company's website last Wednesday he insisted Zoom was "looking into each and every one" of the concerns that had been raised and was "addressing them as expeditiously as we can."

Zoom did not immediately respond to Business Insider's request for comment.