Tinder founders sue parent companies for $2bn

TinderThe co-founders of Tinder and other current and former executives from the dating app are suing the platform’s current parent company for at least $2bn over the alleged manipulation of the app’s valuation.

The lawsuit, filed in a New York court by Sean Rad, Justin Mateen, Jonathan Badeen, and others, is seeking damages from Match Group and its parent company, InterActiveCorp (IAC).

The suit accuses the IAC and Match of using “deception, bullying and outright lies” to play down the valuation of Tinder – creating false financial information, hiding projections, and deliberately delaying updates to the service with no good reason. In doing so, the Tinder founders are accusing the companies of taking in billions of dollars that they were contractually obliged to pay to Tinder employees.

Alongside the accusations of financial fiddling, the lawsuit also includes allegations against former Tinder CEO and IAC chairman Greg Blatt that he “groped and sexually harassed” Tinder’s VP of marketing, Rosette Pambakian, at a company party in Los Angeles in December 2016. It goes on to be claimed that the company knew about the incident but swept it under the rug, following an internal investigation led by a HR executive who had worked for Blatt for more than 10 years.

The IAC has spoken out against the claims made in the lawsuit, stating it’s based on “sour grapes” and that the companies would “vigorously defend” against the accusations.