PHILADELPHIA, April 17, 2020 /PRNewswire/ -- Kehoe Law
Firm, P.C. is making investors aware that on April 7, 2020, a class action lawsuit was filed
in United States District Court,
Northern District of California,
on behalf of Zoom Video Communications, Inc. ("Zoom" or the
"Company") (NASDAQ: ZM) investors who purchased, or otherwise
acquired, Zoom securities between April 18, 2019 and
April 6, 2020, both dates inclusive,
(the "Class Period"), seeking to recover damages caused by the Zoom
Defendants' alleged violations of the federal securities laws and
to pursue remedies under Sections 10(b) and 20(a) of the Securities
Exchange Act of 1934 and Rule 10b-5
promulgated thereunder.
Zoom investors who purchased, or otherwise acquired, Zoom
securities in March 2020 or during
the Class Period April 18,
2019-April 6, 2020 are encouraged to
contact either Michael Yarnoff,
Esq., (215) 792-6676, Ext.
804, myarnoff@kehoelawfirm.com, info@kehoelawfirm.com,
or John Kehoe, Esq., (215) 792-6676,
Ext. 801, jkehoe@kehoelawfirm.com, to discuss
the class action lawsuit or potential legal claims.
According to the class action complaint:
Throughout the Class Period,
[Zoom] Defendants made materially false and misleading statements
regarding the Company's business, operational and compliance
policies. Specifically, [Zoom] 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.
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 its employees from utilizing Zoom for work activities,
the Company's stock price plummeted, damaging investors.
As a result of Defendants'
wrongful acts and omissions, and the precipitous decline in the
market value of the Company's securities, Plaintiff and other Class
members have suffered significant losses and damages. [Emphasis
added.]
Kehoe Law Firm, P.C., with offices in New York and Philadelphia, is a multidisciplinary,
plaintiff–side law firm dedicated to protecting investors from
securities fraud, breaches of fiduciary duties, and corporate
misconduct. Combined, the partners at Kehoe Law Firm have
served as Lead Counsel or Co-Lead Counsel in cases that have
recovered more than $10 billion on
behalf of institutional and individual
investors.
This press release may constitute attorney advertising.
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SOURCE Kehoe Law Firm, P.C.