Company: ZM
Filing Date: 2025-04-25
Form Type: 8-K
Source: 0001193125-25-096694
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Company: Zoom Communications, Inc.
Filing Date: 2025-04-25
Form: 8-K
Item: Item 8.01
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Item 8.01      Other Events  

As previously reported, certain current and former officers and directors of Zoom Communications, Inc. (“ Zoom” or the “ Company”) have been named as defendants in a consolidated stockholder derivative action pending in the United States District Court for the District of Delaware (“ Delaware District Court”), captioned In re Zoom Video Communications Inc. Stockholder Derivative Litigation, Case No. 1:20-cv-00797-GBW(“ Consolidated Derivative Action”).

On January 14, 2025, the parties in the Consolidated Derivative Action entered into a Stipulation of Settlement (“ Stipulation”) to resolve the Consolidated Derivative Action (“ Settlement”). The proposed Settlement of the Consolidated Derivative Action was filed in the Delaware District Court on January 16, 2025, and on April 16, 2025, the Delaware District Court entered an order preliminarily approving the Settlement. The Settlement remains subject to final approval by the Delaware District Court.

Subject to final approval of the Settlement by the Delaware District Court, and in exchange for a release of all derivative claims and dismissal with prejudice of the Consolidated Derivative Action, the Company has agreed, without admission of wrongdoing or liability, (i) to enact certain corporate governance reforms as set forth in Exhibit A to the Stipulation, and (ii) not to oppose plaintiff’s counsel’s request for a fee award not to exceed $1.35 million.

The foregoing summary description of the Stipulation is qualified in its entirety by the full text of the Stipulation, including all exhibits thereto, a copy of which is filed herewith as Exhibit 99.1.