Zoom Shakes Off Most Challenged Statements in Investor Dispute

Zoom Video Communications Inc. is mostly free of accusations it misled investors about the security of its communications platform, but a small portion of the suit was adequately alleged and may continue, a federal judge in California said.

Investors say the communications platform hid software encryption flaws ahead of a drastic increase in usage due to the coronavirus pandemic. Their claim involving one Zoom statement will go forward, but the rest are dismissed with leave to amend, the U.S. District Court for the Northern District of California said.

The would-be class accuses Zoom of claiming to offer end-to-end encryption ...