shot-button
Subscription Subscription
Home > Technology News > Tinder co founders sue parent companies for dollar two billion

Tinder co-founders sue parent companies for dollar two billion

Updated on: 15 August,2018 07:07 PM IST  |  San Francisco
IANS |

"Only hours later, IAC/Match secretly merged Tinder out of corporate existence and into Match Group -- diluting Tinder into a stagnant holding company," the statement added

Tinder co-founders sue parent companies for dollar two billion

Representational Image

Dating app Tinder's co-founders and former employees are suing parent companies Match Group and IAC for $2 billion in damages for allegedly manipulating financial information in order to reduce the platform's valuation and taking away employees' stock options.


"Through deception, bullying and outright lies, IAC/Match stole billions of dollars from the Tinder employees, who include founders Sean Rad, Justin Mateen and Jonathan Badeen, and three current senior executives," said a statement issued by the co-founders late on Tuesday.


The lawsuit, filed in New York Supreme Court, added there were written contracts between IAC and the employees for Tinder to be valued on dates in 2017, 2018, 2020 and 2021 when they would be given the chance to exercise stock options and sell them to IAC or Match Group.


"IAC/Match manufactured a fake Tinder valuation of $3 billion -- the very same valuation they had assigned to Tinder two years earlier, despite its revenues having grown 600 per cent and user base grown 50 per cent.

"Only hours later, IAC/Match secretly merged Tinder out of corporate existence and into Match Group -- diluting Tinder into a stagnant holding company," the statement added.

Tinder is one of Match Group's biggest and most profitable brands, which includes features such as "Tinder Gold" and other in-app purchases that led the platform to be the top-grossing iOS app in September 2017, according to The Verge.

Catch up on all the latest Crime, National, International and Hatke news here. Also, download the new mid-day Android and iOS apps to get latest updates

This story has been sourced from a third party syndicated feed, agencies. Except for the change in the headline, the story has been provided "AS-IS," "AS AVAILABLE, without any verification or editing from our side. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability and data of the text. Mid-day management/mid-day.com reserves the sole right to alter, delete or remove (without notice) the content in its absolute discretion for any reason whatsoever.

"Exciting news! Mid-day is now on WhatsApp Channels Subscribe today by clicking the link and stay updated with the latest news!" Click here!


Mid-Day Web Stories

Mid-Day Web Stories

This website uses cookie or similar technologies, to enhance your browsing experience and provide personalised recommendations. By continuing to use our website, you agree to our Privacy Policy and Cookie Policy. OK