Zoom Video $150M Securities Class Action Settlement

Consumers who purchased or otherwise acquired Zoom Video Communications Inc. common stock or call options on Zoom common stock or who sold put options on Zoom common stock may qualify to claim a portion of a $150 million class action settlement.

Zoom agreed to pay $150 million to settle a class action lawsuit alleging the company and CEO Eric S. Yuan violated federal securities laws. The plaintiffs claimed Zoom made materially false and misleading statements about the security capabilities of its meetings. Investors said after corrective disclosures revealed Zoom did not encrypt meetings end-to-end as represented, the price of its securities dropped and they suffered losses.

Who can claim a Zoom payment?

Class members must meet the following criteria:

• They purchased or otherwise acquired Zoom common stock or call options on Zoom common stock between April 18, 2019, and April 6, 2020, OR
• They sold put options on Zoom common stock between April 18, 2019 and April 6, 2020.

Eligible class members include individuals, trusts, corporations, partnerships and other entities that made qualifying transactions in Zoom securities during the class period.

How much is the securities payout?

Pro rata payment: The total settlement fund is $150 million. Payments will be proportional to the class member's recognized loss compared to the total recognized losses of all claimants.The amount each person receives depends on several factors, including:

• The total number of valid claims submitted
• The total recognized losses of all claimants
• The specific details of each claimant’s transactions

How to claim a class action rebate

Class members can file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is Sept. 16, 2025.

Settlement administrator's mailing address: Zoom Securities Settlement, Claims Administrator, c/o Gilardi & Co. LLC, P.O. Box 301133, Los Angeles, CA 90030-1133

Documentation required

Class members must provide documentation to support their claim. Acceptable forms of documentation include:

• Broker confirmation slips
• Broker account statements
• Authorized statements from a broker containing the required transactional information
• Other documents that adequately evidence Zoom securities transactions

Payout options

• Electronic payment
• Paper check

$150 million stockholder settlement fund breakdown

The $150,000,000 settlement fund includes:

• Settlement administration costs: To be determined
• Attorneys' fees: Up to $28,125,000
• Attorneys' expenses: Up to $400,000
• Service award to lead plaintiff: Up to $48,750
• Payments to eligible class members: Remaining net settlement fund after the above deductions

Important dates

• Claim deadline: Sept. 16, 2025
• Exclusion deadline: Sept. 18, 2025
• Fairness hearing: Oct. 9, 2025,

When is the Zoom securities settlement payout date?

Payments to eligible class members will be made after the court grants final approval of the settlement and any appeals are resolved.

Why did this class action settlement happen?

The class action lawsuit alleged Zoom made false and misleading statements regarding the security of its meetings, particularly about end-to-end encryption. The plaintiffs claimed these misrepresentations caused the price of Zoom securities to artificially inflate during the class period. When corrective disclosures were made, the price of the securities dropped, allegedly causing losses to investors.

The parties agreed to settle to avoid the risks, costs, and delays of further litigation while providing compensation to affected investors.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ