Zoom Video Communications Inc. has proposed an $18 million settlement to resolve a U.S. Securities and Exchange Commission (SEC) investigation into its handling of security, data protection, and privacy practices, including encryption protocols. The offer was disclosed in a quarterly filing Tuesday, though the agreement remains subject to SEC approval.
This settlement stems from a probe initiated in July 2020, after the SEC issued a subpoena seeking detailed information about Zoom’s privacy and security measures. The company noted in its filing that it recorded the settlement amount in the fall of 2023.
Broader Investigations by Federal Authorities
Zoom’s regulatory challenges extend beyond the SEC. Both the U.S. Attorney’s Offices for the Northern District of California (NDCA) and the Eastern District of New York (EDNY) have launched parallel investigations into the company’s data practices and interactions with foreign governments, including China.
The EDNY began its inquiry in June 2020, issuing a subpoena focused on Zoom’s dealings with Chinese authorities. The following month, NDCA and the SEC also subpoenaed the company for additional information, Zoom confirmed.
