The CEO and founder of Zoom Video Communications dumped over $ 38 million of the company’s stock, which is now under intense scrutiny of suspected data breaches, DailyMail.com may reveal.
Zoom’s profile and inventory skyrocketed as millions of users turned to stay in touch with colleagues, friends, and family during the COVID-19 crisis bans. However, a number of privacy concerns and allegations have been raised that the company has failed to live up to its claim that communications are “encrypted throughout”.
Instead, the code in the original app allowed users’ personal information to be shared with third parties, including Facebook.
Zoom launched an updated app on March 27 to fix the problem. However, users have already filed two lawsuits for data breaches. The company is currently under investigation by the New York Attorney General and the FBI.
Zoom Video Communication’s 50-year-old CEO Eric Yuan, along with several senior executives, sold multi-million dollar shares
Zoom was hit by privacy concerns and allegations that the company had failed to live up to its claim that communications were “consistently encrypted.”
DailyMail.com’s Security Exchange Commission insider trading records now show that 50-year-old CEO Eric Yuan along with several executives sold multi-million dollar shares while the company struggled to resolve these privacy issues. All have made their sales to the SEC mandatory by law.
Janine Pelosi, Chief Marketing Officer, has made almost $ 14 million in trades since February
Yuan, whose $ 6.8 billion fortune is based on the video conferencing platform and app that went public last April, earned $ 10.5 million on January 14, February 12, 12, $ 5 million and $ 15.5 million on March 16.
Janine Pelosi, 35, chief marketing officer, who today publicly admitted that the “platform was not designed for consumers” and that the tremendous acceptance among users has forced Zoom to reevaluate a lot – especially privacy settings – has nearly 14 million US dollars brought in to trades since February.
Records show that Pelosi has made 13 trades since 2019, with for the most part continuously trading between 13 and 15,000 shares at a time.
But on February 18, she made her biggest trade by far by selling 81,850 units of Zoom stock and pocketing $ 7.76 million. It sold a further 31,850 units on March 31 and 15,623 units on March 16 in stores for $ 3.4 million and $ 1.7 million, respectively.
CFO Kelly Steckelberg traded $ 5.3 million of her shares, and the company’s director, Santiago Subotovksy, made $ 16.8 million in two stores in March alone.
Reports on the vulnerability of the platform to hacking were already circulating in July 2019.
In recent weeks, a number of reports, including research published on Vice’s motherboard, have identified potential data breaches as Zoom’s popularity increased with millions of home workers and the corona virus pandemic self-isolation.
One of the problems facing the platform is so-called “zoom bombardment”, in which hackers hijack video conferences to show pornography or hate messages. This is currently being investigated by the FBI.
CFO Kelly Steckelberg (with yuan on the left) traded $ 5.3 million of her shares, and CEO Santiago Subotovksy (right) earned $ 16.8 million in two stores in March alone
Zoom’s profile and inventory skyrocketed as millions of users turned to Zoom to stay in touch with colleagues, friends, and family during the COVID 19 crisis block (stock photo).
The company’s share price has fallen as Zoom faced a backlash. On Wednesday, stocks fell 6 percent on Wednesday. It was the third consecutive day of declines.
To date, the stock has dropped 12 percent. Yuan is reported to hold 20.5 to 22 percent of the shares.
It peaked at $ 110.7, although the stock rose higher (Subotovsky was able to sell at $ 121) and early-year sales were between $ 80 and $ 90.
When the company went public in April 2019, the shares were $ 36. At the end of that day, they had risen 72 percent.
And the stock price, which rose over 115 percent in the first two months of the year, has fallen 10 percent since March 27 alone.
A spokesman for Zoom Video Communications told DailyMail.com: “As is common with public companies, certain executives and board members of Zoom have preset trading plans that are automatically generated at specified times without their input.”
However, the spokesman did not announce whether one of the businesses in question was triggered in this way.
He added, “In addition, part of Eric’s businesses are not sales, but donations for humanitarian purposes.” He pointed out that all of the executives mentioned still hold a significant amount of Zoom shares and “extremely optimistic” about the company remains a future.