Seven current and former executives at Tinder along with the company’s original founders have filed suit against the parent companies of the dating app seeking $2 billion in damages. The lawsuit alleges that the firms undermined the app’s valuation to prevent them from receiving billions of dollars in stock options.
The suit was filed Tuesday, August 14 in New York state court against IAC/InterActiveCorp and its subsidiary Match Group Inc.
The plaintiffs assert that the parent companies repeatedly falsified financial information to reduce the apparent valuation of the application’s stock which resulted in significantly smaller payouts to the founders and executives.
Parent companies, IAC and Match, rebutted that they have paid Tinder’s founders and employees billions of dollars in equity compensation and that the valuation process was conducted properly with independent oversight from two investment banks.
