ZM SHAREHOLDER ALERT: Bronstein, Gewirtz & Grossman, LLC Reminds Zoom Video Communications, Inc. Investors of Class Action and Encourages Investors to Contact the Firm
NEW YORK, May 19, 2020 (GLOBE NEWSWIRE) -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC reminds investors that a class action lawsuit has been filed against Zoom Video Communications, Inc. ("Zoomâ or "the Company") (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 firmâs 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 Zoomâs assertions, the Companyâs video communications service was not end-to-end encrypted; (3) as a result of all the foregoing, users of Zoomâs communications services were at an increased risk of having their personal information accessed by unauthorized parties, including Facebook; (4) usage of the Companyâs video communications services was foreseeably likely to decline when the foregoing facts came to light; and (5) as a result, the Companyâs public statements were materially false and misleading at all relevant times.
On or around April 18, 2019, Zoom conducted its initial public offering (âIPOâ), selling 9.91 million shares priced at $46 per share. Then, on March 31, 2020, The Intercept reported that Zoomâs video conferencing software is not, in fact, end-to-end encrypted between meeting participants, contrary to the Companyâs suggestion. Then, on April 1, 2020, post-market, citing review of an internal memo, Reuters reported that Space Exploration Technologies Corp. (âSpaceXâ) had banned its employees from using Zoomâs video conferencing software, due to âsignificant privacy and security concerns.â Between March 30 and April 2, 2020, Zoomâs 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 firmâs 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 firmâs expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Contact:
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | info@bgandg.com