A New York state appeals court has ruled this week that the Tinder founders’ lawsuit against parent IAC will not be dismissed.
The decision comes five months after New York State Supreme Court Justice Saliann Scarpulla rejected another motion to dismiss the litigation in Manhattan.
The suit accuses Match Group and IAC of deliberately undervaluing Tinder to shrink early employee stock options, leading Sean Rad and other founders to cash out with minimal reward for their entrepreneurship.
The panel of judges said in a statement: “Although the parties agreed that the value of their stock options would be determined by the valuation process, nothing in the agreements provided that the valuation would be binding or final or that the parties would be precluded from fully disputing the valuation in court.”
Orin Snyder, attorney for the Tinder plaintiffs, said: “IAC and Match cheated our clients and engaged in a brazen cover-up.
“We are pleased that the appellate court unanimously upheld the trial court’s decision and rejected IAC’s latest maneuver to avoid a trial.
“The evidence of IAC’s lawless behavior is mounting. We look forward to presenting it to the jury.”
Match and IAC did not respond to a request for comment made by Reuters.
IAC is currently in the process of spinning Match Group. It may also shift portfolio companies ANGI Homeservices and CH Media in the coming months.
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