Zoom Says SEC Dropped Data Privacy Investigation, Separate Cases Pending
The Securities and Exchange Commission won’t pursue enforcement action against Zoom over allegations the company illegally shared user data with Chinese entities, the company said in a Friday filing with the agency.
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The company said there are still pending investigations led by U.S. attorneys for the Eastern District of New York (EDNY) and the Northern District of California (NDCA).
Zoom said the allegations stem from DOJ’s June 2020 grand jury subpoena requesting “information regarding our interactions with foreign governments and foreign political parties, including the Chinese government, as well as information regarding storage of and access to user data, the development and implementation of Zoom’s privacy policies, and the actions we took responding to law enforcement requests from the Chinese government.”
Zoom said it “recorded an $18.0 million accrual with respect to a tentative settlement offer for the SEC matter” in 2025, but on July 30, the SEC “informed us that their investigation has concluded and they do not intend to recommend an enforcement action.”
The other court investigations are pending, and “a negative outcome in any or all of these matters could cause us to incur substantial fines, penalties, or other financial exposure, as well as reputational harm,” the company said. “We do not know when the EDNY and NDCA matters will be completed, which facts we will ultimately discover as a result of the investigations, or what actions the government may or may not take.”
The agency said in a statement Tuesday: "The SEC does not comment on the existence or nonexistence of a possible investigation."