Tinder co-founders file billion-dollar lawsuit against parent company

A group of Tinder employees from the startup phase feel cheated by the parent company of the popular dating app and are seeking damages of at least two billion dollars in court. The ten plaintiffs - including three co-founders Sean Rad, Jonathan Badeen and Justin Mateen - accuse parent company Match Group and Internet conglomerate IAC/InterActiveCorp of cheating them out of stock options. That's according to the lawsuit filed Tuesday.

Allegedly, financial data was manipulated in order to artificially fudge Tinder's enterprise value downwards. Since they had contractually agreed to participate in the increase in value, they lost a lot of money as a result, the plaintiffs claim. On the stock market, the shares of IAC and Match came under noticeable pressure. Longtime manager Greg Blatt is also accused in the lawsuit of sexually harassing marketing chief Rosette Pambakian during a Christmas party in 2016.

IAC Group, which owns Tinder through an 80 percent stake in Match Group, denied the allegations. Some plaintiffs did not seem to like the fact that Tinder had enjoyed enormous success after they left, quoted the Wall Street Journal From a statement. "We look forward to defending our position in court."

The New York-based IAC Group currently holds more than 80 percent of the shares in Match Group, which also operates other dating apps. The mobile smartphone platform Tinder was launched in 2012 and is now particularly popular among young people. The target group of the app, which is available in 190 countries according to the company, is 18- to 35-year-olds. Users create a profile with photos and a short text and can then get in touch with other users from the surrounding area. By swiping on a photo, users express their liking and can send each other short messages and arrange to meet up after "liking" each other. (AWP / SDA / DPA)