Welcome back for another week of What's Next, where we report on the intersection of law and technology. Here's what we've got for you today:

>> Zoom's privacy practices are under a microscope as coronavirus forces working masses onto the video conferencing platform.

>> Alternative dispute resolution might not ever be the same after this pandemic.

>> U.S. District Judge Lucy Koh's recent iCloud ruling cites her own opinions.

Let's chat: Email me at [email protected] and follow me on Twitter at @a_lancaster.

A Speed Bump for Zoom

Coronavirus' stay at home orders means workers are flocking to Zoom Video Communications' platform with their kids, pets and "work pajamas" in tow. But the company's privacy practices have come under scrutiny as companies begin to rely on video conferencing as a fundamental aspect of their business.

A report from The Intercept found that the company's past claims of end-to-end encryption are not what they seem, and New York Attorney General Letitia James is digging into Zoom's security procedures.

And earlier this week, Wexler Wallace and Tycko & Zavareei filed separate class action complaints against Zoom in the U.S District Court for the Northern District of California.

Wexler Wallace's complaint alleges that Zoom has failed to implement proper privacy protocols, which affects an ever growing number of people since business has "exploded" in light of COVID-19. The complaints cite a Motherboard article revealing that the iOS version of the Zoom app transfers data to Facebook, a feature that Zoom said it has since deleted in an update.

"Upon installing or upon each opening of the Zoom App, Zoom collects the personal information of its users and discloses, without adequate notice or authorization, this personal information to third parties, including Facebook … invading the privacy of millions of users," the complaint asserts.

The lawsuits are among the first to invoke the California Consumer Protection Act, arguing that San Jose-based Zoom gathered personal data without the notices and user consent required by the CCPA.

Tycko & Zavareei's Katherine Aizpuru said it's the first CCPA lawsuit she has filed since the law took effect Jan. 1. Even with Zoom's update removing the code that transfers personally identifiable information to Facebook, Aizpuru said Zoom has some unanswered questions to account for.

She said that, as she understands it, Zoom's update is not automatic for all users, so not everyone has received it.

"The second problem is changing the code doesn't compensate the people whose information was shared with Facebook without their consent," she said.

Although consumers are becoming more attuned to how companies use their data, when someone was opening the Zoom app on their phone they had no idea that the app was transmitting a unique identifier to Facebook, she said.

"People are aware and think that it's extremely important companies are transparent with them and get their affirmative consent, and this is really yet another example of a company failing to do that."

ADR's Post-COVID-19 Outlook

Alternative dispute resolution providers are waking up to the reality of work and life in a pandemic alongside the rest of the legal industry.

As ADR services transition to remote work, some neutrals are spotting a silver lining or two. Retired federal Judge Vaughn Walker said many members of the ADR community might not want to go back to the way things were before COVID-19.

"I think the fact that we've been forced to use these technologies—it's going to stick," said the former chief judge of the Northern District of California. "It's not going to take over the whole range of business, but more and more, I think you're going to see use of these technologies, which will save on travel time."

On Friday, I reported on how the global health crisis could spark permanent change in alternative dispute resolution. Here are a couple more insights that I couldn't cram into the story:

>> An Expanding Influence Gilda Turitz, a neutral who works with the International Institute for Conflict Prevention and Resolution (CPR) in San Francisco, pointed out that remote tools can help neutrals with niche specialities connect with people across the world. But it could also help the elderly or people with disabilities who might have a harder time moving around, said Joanna Barron, vice president of California-based ADR Services Inc. Besides helping her team service parties located further away from the organization's seven offices, such as Shasta or Fresno, the tool can serve as an alternative for clients who might still be worried about cozying up with people in a room right away after the pandemic, Barron said. "People who are at high-risk of infection might still have some hesitancy coming in person for some time," she said.

>> Calm Before the Storm Dwight James, senior vice president at the American Arbitration Association, said last week that he started to see a downturn in the number of filings as businesses responded to the coronavirus and related orders. However, he does expect an uptick in parties seeking ADR services for breach of contracts as a result of shelter in place mandates, and potential actions related to state response plans, or lack thereof.

U.S. District Judge Lucy Koh of the Northern District of California.

iCloud Users' Standing Problem

U.S. District Judge Lucy Koh of the Northern District of California is no stranger to peering over the edge of data protection law. And this week, the judge cited her past rulings in a class action against Apple to help define what qualifies as an injury worthy of standing in cases involving consumer data.

In a putative class action over claims that it breached its contract with iCloud users when it enlisted other tech giants to store data, Koh agreed with Apple's Cooley attorneys that the "real and immediate threat of repeated injury" necessary to gain standing for Article III injunctive relief does not apply to class members who do not currently pay for the service. She added the plaintiffs do not allege they currently pay for iCloud, nor do they plan to in the future.

"Simply pleading that plaintiffs are storing their data on Apple's iCloud is not enough to plead an injury in fact because plaintiffs' injury is not merely connected to storing data on the iCloud but to overpaying for the paid version of iCloud storage," Koh wrote. "Without alleging that plaintiffs are currently paid iCloud subscribers—as opposed to merely utilizing the free five GB of iCloud storage—plaintiffs have not met their burden of establishing an injury that is 'certainly impending.'"

She granted Apple's motion to dismiss injunctive relief claims and alleged violations of California's False Advertising (FAL) and Unfair Competition Laws (UCL), but offered plaintiffs leave to amend.

Koh cited In re iPhone Application Litigation, which she presided over, in batting away class members' claims that they relied on the contractual language in their decision to purchase a subscription, a necessary prong in FAL and UCL violations.

"Plaintiffs assert that they adequately plead reliance because they 'affirmatively clicked the 'AGREE' [button] signifying their review and assent to the contract terms,' including Apple's alleged misrepresentations regarding iCloud storage. This court, however, has previously rejected this precise argument," she wrote.

However, the judge did find that the class sufficiently made a case for monetary damages under Article III with their claims that "Apple's 'price premium' harmed putative class members who would have otherwise utilized these cheaper cloud storage alternatives."

Plaintiffs, who are represented by The Katriel Law Firm and The Mehdi Firm, allege that Apple breached its terms of service by handing off its digital files to third parties to store in their facilities. Koh said that in the Yahoo data breach litigation, which she also oversaw, "this court has previously recognized that such allegations are sufficient to confer standing."

On the Radar

Facebook Plucks Board Leadership from WilmerHale Facebook tapped Wilmer Cutler Pickering Hale and Dorr's Robert Kimmitt for a top independent director role on the social media company's board of directors. The former U.S. ambassador to Germany and deputy secretary of the Treasury Department, will act as a liaison between the board and CEO and controlling shareholder Mark Zuckerberg. "This moment in particular is an incredibly important time to help people connect," Kimmitt said in a statement. "I look forward to working with Mark, [COO] Sheryl [Sandberg], and the rest of the board to further the company's mission." Read more from Ross Todd here.

UK's Online Court Accelerator As judges around the world espouse their courtrooms for video chat rooms, online court evangelists in the United Kingdom are coming together to share best practices. Richard Susskind, president of the Society for Computers and Law and author of "Online Courts and The Future of Justice," has helped launch a platform, Remote Courts Worldwide, designed to help develop seamless procedures for online proceedings. "There's little point in lamenting any lack of past investment nor in predicting that the technology will fail," Susskind said in a statement. "Let's make it happen. We must seize the moment and come together to accelerate the development of new ways of delivering just outcomes for court users." Read more from Meganne Tillay here.

Coronavirus Chills Legal Tech Venture capitalists are predicting fewer investments in legal tech as COVID-19 shakes down the economy. San Francisco-based Touchdown Ventures principal Alex Nwaka said the pandemic means that VCs aren't hopping on planes to meet with new companies. "I think in general that is going to cause challenges to get capital out of the deal, I think the activity will decrease because of the pandemic," but not necessarily deplete funding," he said. Read more from Victoria Hudgens here.

Thanks for reading. We will be back next week with more What's Next. Wishing everyone a safe, happy and healthy quarantine.