ZM: Trading up 49% on cloud news, but $150M data privacy payout still resonates

Court: N.D. California

Case: 3:20-cv-02353

Zoom ZM saw its trading volume spike by 48.74% to $407 million on July 22, 2025, placing the company 283rd in overall market activity. The surge followed the announcement of a strategic partnership with a top cloud provider and the launch of a new “Interactive Polls” feature to boost engagement in virtual meetings. These moves come as Zoom aims to grow enterprise subscriptions and reinforce its security posture—but it remains under the shadow of a $150 million investor settlement tied to prior data privacy failures.

The volume rally underscores renewed investor interest as Zoom expands its offerings and seeks to reclaim trust after years of security scrutiny.

Key Takeaways

• Volume Surge: Trading volume jumped 48.74% to $407M, ranking Zoom 283rd by daily activity.
• Cloud Partnership Announced: Zoom teams up with a top cloud provider to enhance video conferencing through cloud-based performance.
• New Feature Released: “Interactive Polls” added to enable real-time participant feedback during virtual meetings.
• Enterprise Growth: User base expands, with strong gains in enterprise subscriptions due to security and product enhancements.
• Privacy Response: Zoom implements stricter data protection protocols and increases transparency around user data handling.

Timeline Overview

• July 2019: Reports reveal security flaws in Zoom’s encryption technology.
• March 26, 2020: Disclosures show data was shared with third parties like Facebook.
• March 27, 2020: ZM stock drops 19.6% after public fallout.
• May 18, 2020: Investors file suit over misleading encryption claims.
• July 12, 2023: Zoom agrees to a $150 million settlement to resolve the lawsuit.

Allegations Include

Zoom was accused of misrepresenting its encryption capabilities, claiming it used end-to-end encryption while actually relying on less secure transport encryption. Investors also cited the company’s failure to disclose third-party data sharing practices, which exposed user data and undermined public trust.

Investor Update

Zoom’s $150 million payout resolves allegations tied to its data privacy failures during the 2019–2020 period. While the company has since upgraded its security architecture and increased transparency, the case continues to shape investor perception. Affected shareholders may still qualify for recovery as part of the finalized settlement.

You can check more information about it and file for a payout HERE.