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August 14, 2018 10:00 pm

Tinder Founders Sue Dating App's Owners For At Least $2 Billion

An anonymous reader quotes a report from TechCrunch: A group of Tinder founders and executives has filed a lawsuit against parent company Match Group and its controlling shareholder IAC. The plaintiffs in the suit include Tinder co-founders Sean Rad, Justin Mateen and Jonathan Badeen -- Badeen still works at Tinder, as do plaintiffs James Kim (the company's vice president of finance) and Rosette Pambakian (its vice president of marketing and communications). The suit alleges that IAC and Match Group manipulated financial data in order to create "a fake lowball valuation" (to quote the plaintiffs' press release), then stripped Rad, Mateen, Badeen and others of their stock options. It points to the removal of Rad as CEO, as well as other management changes, as moves designed "to allow Defendants to control the valuation of Tinder and deprive Tinder optionholders of their right to participate in the company's future success." The lawsuit also alleges that Greg Blatt, the Match CEO who became CEO of Tinder, groped and sexually harassed Pambakian at the company's 2016 holiday party, supposedly leading the company to "whitewash" his actions long enough for him to complete the valuation of Tinder and its merger with Match Group, and then to announce his departure. In response, the plaintiffs are asking for "compensatory damages in an amount to be determined at trial, but not less than $2,000,000,000." IAC and Match Group issued a statement denying the allegations: "...Match Group and the plaintiffs went through a rigorous, contractually-defined valuation process involving two independent global investment banks, and Mr. Rad and his merry band of plaintiffs did not like the outcome. Mr. Rad (who was dismissed from the Company a year ago) and Mr. Mateen (who has not been with the Company in years) may not like the fact that Tinder has experienced enormous success following their respective departures, but sour grapes alone do not a lawsuit make. Mr. Rad has a rich history of outlandish public statements, and this lawsuit contains just another series of them. We look forward to defending our position in court."

Read more of this story at Slashdot.


Original Link: http://rss.slashdot.org/~r/Slashdot/slashdot/~3/izROhtRhFB8/tinder-founders-sue-dating-apps-owners-for-at-least-2-billion

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