The Internet company Match Group has ended the lawsuit of the Tinder co-founders by means of a settlement. The Tinder employees had accused the parent company of manipulating financial data, which is said to have cheated them of stock options after the takeover. They had asked for at least $ 2 billion in damages. Now the plaintiffs are satisfied with $ 441 million.
Plaintiffs withdraw after severance payment
That goes from yesterday the US Securities and Exchange Commission presented comparison emerged. In return, the ten plaintiffs – which include co-founders and other employees from Tinder’s start-up phase – are withdrawing their 2018 lawsuit and allegations.
The Match Group, as one of the world’s largest operators of dating platforms, bought the majority of the shares in Tinder in 2017. Plaintiffs alleged that financial data had been tampered with to downgrade Tinder’s enterprise value. Since they had contractually agreed to participate in the increase in value, they lost a lot of money as a result.
Match pays in cash despite the “unfounded” lawsuit
Match had described the allegations as “unfounded”. Tinder’s company valuation was carried out in a contractually agreed procedure with the involvement of two independent banks, reported Techcrunch. Match wanted to vigorously defend itself against the allegations in court.
In the course of the proceedings, the court has already dismissed some of the counts, but a settlement has now been reached with a total compensation payment of $ 441 million. The Match Group said they would pay the severance payment out of cash. The last one at the supervisory authority quarterly report submitted shows Match Group cash at the end of September of $ 511.3 million.