A law firm representing a group of Match Group investors has filed a class action lawsuit against the dating app giant. The complaint alleges that Match Group made misleading statements to investors, overstating the company’s product development.
A recent article from the Wall Street Journal explains that the class period began in November 3rd 2021, when Match Group highlighted “radical product transformation” and a host of new product initiatives, in a letter to shareholders.
Those filing the lawsuit argue that this was also the case in May 2022, where Match Group stated that Tinder was “on track” with this product development.
However, Match Group then announced in August 2022 that Tinder’s growth had slowed due to poor product execution. The lawsuit claims that Match Group admitted Tinder did not deliver on its product roadmap.
This announcement ultimately led to Match common stock declining by more than 17% in August 2022.
According to the complaint, this cycle repeated itself In November 2022 and January 2023, where Match Group assured investors that product execution was improving, and then later admitting “weaker-than-expected product execution”. This again was followed by a decline in common stock value.
These events led investors to file this lawsuit, arguing that Match Group failed to disclose it was not effectively executing these product initiatives, that it was not on track to deliver them, and therefore Match Group’s announcements lacked a reasonable basis.
Kessler Topaz Meltzer & Check, LLP, the law firm filing this lawsuit, are encouraging investors with significant losses to get in touch. The case, called Bardaji v. Match Group, Inc, was filed in the US District Court for the District of Delaware.