IAC and Match Group have responded to the legal action that Tinder co-founders are taking against them.
Three of Tinder’s co-founders, led by Sean Rad, the former CEO, as well as seven former and current employees filed a lawsuit on Tuesday.
It is claimed that IAC and Match Group manipulated financial data which resulted in Tinder being undervalued. As a result, early employee stakes decreased in value in a way that was unjustifiable.
The plaintiffs want at least $2 billion as compensation.
A statement from IAC and Match Group reads: “Since Tinder’s inception, Match Group has paid out in excess of a billion dollars in equity compensation to Tinder’s founders and employees. With respect to the matters alleged in the complaint, the facts are simple: 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.”
The plaintiffs are also accusing IAC and Match Group of concealing alleged sexual misconduct incidents within the company. Specifically, an incident at Tinder’s 2016 Christmas holiday party was mentioned in a statement that was released by Sean Rad and his team.
Whitney Wolfe Herd, founder of Bumble and co-founder of Tinder, previously sued Tinder in 2014 claiming that she was the victim of sexual harassment. The lawsuit was eventually settled out of court.
Read more here.