Zoom Dips After Lawsuit Claims It Disclosed Personal Data

(Bloomberg) -- Zoom Video Communications Inc. dipped 3.8% Tuesday following a lawsuit by a user who claims the video-conference service illegally disclosed personal information.

While Zoom shares have fallen so far this week, the stock has more that doubled from the $62 closing price on its first day of trading last April. The stock was trading at $145.16 at 11:35 a.m. in New York, giving the company a $40.5 billion market capitalization.

The shares have soared 113% this year as people have been forced to work from home amid the coronavirus pandemic, often conducting conference calls and online education over Zoom. The stock has been a rare gainer amid a vast market correction.

But San Jose, California-based Zoom is sure to face more scrutiny as it becomes a core piece of how people work and interact from their homes. The user lawsuit alleges that the company collects information when people install or open the Zoom application and shares that information with third parties, including Facebook Inc.

Zoom didn’t respond to a request for comment on the lawsuit Monday night.

In addition to the user lawsuit, the New York Times reported that the company is facing scrutiny from New York’s attorney general.

©2020 Bloomberg L.P.