BOSTON, April 30, 2020 (GLOBE NEWSWIRE) -- Block & Leviton LLP (www.blockesq.com), a national securities litigation firm, reminds investors that a class action lawsuit has been filed against Zoom Video Communications, Inc. (“Zoom”) (NASDAQ: ZM) and certain of its officers for securities fraud. Investors who purchased Zoom shares after April 18, 2019 and lost money should contact Block & Leviton for a free case evaluation.

Zoom’s stock price shot up in recent weeks as millions of people work from home, and schools are closed, due to COVID-19 restrictions. Zoom is a video conference service which allows numerous individuals to simultaneously join an online video conference. Zoom touted the safety and security of its online video conferences, including end-to-end encryption of those video conferences. Eric Yuan, Zoom’s chief executive officer, admitted to the Wall Street Journal, however, that Zoom does not, in fact, have the technology in place to provide end-to-end encryption of video conference calls. Some users are moving away from using Zoom’s services because its technology is not as secure as users had been led to believe. On March 23, 2020, Zoom hit its all-time closing stock price high of $159.56 per share. On April 8, 2020, in pre-market trading, the stock fell to below $110 per share.

Then, on April 22, 2020, Zoom stated that it had more than 300 million daily active users.  Shortly thereafter, however, Zoom revised this statement to provide that it had “300 million daily Zoom meeting participants,” a significant distinction. Zoom recognized this as an “oversight on [its] part.” On this news, the stock fell approximately 8%.

Block & Leviton attorneys can be reached at (617) 398-5600, or via email at cases@blockesq.com, or at https://shareholder.law/zm. Investors have until June 8, 2020 to seek appointment as lead plaintiff in the lawsuit.

Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country’s financial markets.  The firm represents many of the nation’s largest institutional investors as well as individual investors in securities litigation throughout the United States.  The firm’s lawyers have recovered billions of dollars for its clients.

This notice may constitute attorney advertising.

CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (617) 398-5600
Email: cases@blockesq.com
SOURCE: Block & Leviton LLP
www.blockesq.com

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