Zoom Investors Lose Second Bid to Lead Security-Flaw Suit Class

Zoom Video Communications Inc. investors who failed to secure a role as lead plaintiff for the would-be class lost their bid to get a federal judge in California to reconsider appointing them.

The Zoom Investor Group didn’t identify any new law or material facts supporting its reconsideration bid, and failed to show a “manifest failure” in the original proceedings to pick a lead plaintiff for the securities suit against the online communications platform, the U.S. District Court for the Northern District of California said.

Investors accused Zoom of hiding software encryption flaws ahead of a drastic increase in usage ...