NEW YORK (CelebrityAccess) Barry Diller’s IAC/InterActiveCorp has been hit with a lawsuit by its subsidiary Tinder, which claims that IAC and fellow subsidiary – and one of Diller’s first babies – Match Inc. conspired to cheat Tinder out of billions of dollars in stock options.
The lawsuit, filed in New York State Supreme Court in Manhattan today, claims IAC and Match deliberately offered “false, misleading and incomplete financial information and projections” in order to keep Tinder’s value low, thereby limiting its equity exposure. It claims that the defendants downplayed Tinder’s valuation in private but boasted its success in public to boost the stock price so they “could enrich themselves by talking out of both sides of their mouths.”
The 10 plaintiffs include Tinder co-founders Sean Rad and Jonathan Badeen who are seeking at least $2 billion in damages and a jury trial.
“Since Tinder’s inception, Match Group has paid out in excess of a billion dollars in equity compensation to Tinder’s founders and employees,” the companies said in a statement to Deadline Hollywood. “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.”
The companies added that it Tinder has seen enormous success since the departure of the two co-founders but “sour grapes alone do not a lawsuit make.”