Tinder founders sue parent companies Match Group, IAC for $2bn
Tinder co-founders Sean Rad and Jonathan Badeen, along with eight other former and current Tinder employees, have sued parent company Match Group, and its holders IAC for a whopping $2bn. The lawsuit alleges financial manipulation by Match Group and IAC, as well as sexual harassment by former Match Group CEO Greg Blatt. IAC, however, has called the lawsuit "meritless". Here's more.
Details of the lawsuit against Match Group, IAC
The dispute primarily centres around a 2017 valuation of Tinder by Wall Street banks to determine the value of stock options received by Rad and the other plaintiffs. Notably, the 2017 analysis had pegged Tinder's valuation at $3bn, unchanged from its valuation in 2015. The lawsuit alleges manipulation by Match Group and IAC, and claims that Rad and co were deprived of millions.
Sean Rad's statement on the lawsuit
"They lied about the financial performance. They manipulated financial data, and essentially stole billions of dollars by not paying us what they contractually owe us," Sean Rad explained in an interview with CNN.
The lawsuit alleges sexual harassment by former Match Group CEO
However, that's not all. Apart from financial manipulation, the lawsuit also alleges that Match Group CEO Greg Blatt, who took over as Tinder CEO in Dec'16, had sexually harassed and groped Tinder employee Rosette Pambakian (also a plaintiff) at a 2016 holiday party. The lawsuit alleges that Match Group 'whitewashed' Blatt's actions long enough for the company to acquire Tinder, before announcing Blatt's departure.
IAC says the lawsuit is born out of jealousy
Responding to the lawsuit, IAC said that it would "vigorously defend" itself against what it called a "meritless" lawsuit. Additionally, IAC went on a verbal offensive, saying that Rad and other plaintiffs who had left Tinder a year or so ago didn't "like the fact that Tinder has experienced enormous success following their respective departures, but sour grapes alone do not make a lawsuit".
Notably, Rad and co have a big gun on board
Notably, Sean Rad, Jonathan Badeen, and the other plaintiffs are being represented by Orin Snyder of law firm Gibson Dunn, who had earlier represented some of the biggest tech companies including the likes of Facebook, Apple, and Uber.
