Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

IAC sues Tinder co-founder, escalating fight over valuation

Published 01/16/2019, 03:37 PM
Updated 01/16/2019, 03:37 PM
© Reuters. Rad is seen during celebrations for Match Group's IPO at the NASDAQ stock exchange

By Jan Wolfe

(Reuters) - Online dating company Match Group Inc (O:MTCH) and its parent company IAC/InterActiveCorp (O:IAC) have filed a lawsuit against Sean Rad, a co-founder of Match Group's popular dating service Tinder, of secretly copying company files and other proprietary information.

The lawsuit, filed in New York state court in Manhattan late on Tuesday, comes six months after Rad and other co-founders, executives and early employees of Tinder sued IAC, accusing it of undervaluing Tinder to avoid paying them billions of dollars.

The lawsuit claims at least $250 million in damages, which Match and IAC said represented "the portion of the equity compensation Rad received but that he was not entitled to by virtue of his wrongdoing."

IAC and Match in the complaint alleged that in violation of an employment agreement, over several years Rad created backups of internal emails, forwarded company emails to a personal email address, and directly copied company files that included "highly sensitive, non-public information concerning his employers’ business strategies and plans."

Orin Snyder, a lawyer for Rad, who lives in Los Angeles, said in a statement that the lawsuit was "ridiculous" because Rad's employment contract allowed him to back up his email.

"Do IAC and Match really think the jury won't see right through this desperate act of retaliation?" Snyder said.

The lawsuit by Rad and others against IAC and Match, which was filed in August, also in New York state court in Manhattan, alleged the companies deliberately undervalued the Tinder dating app to limit how much money they could make from exercising stock options.

IAC and Match denied the allegations, arguing in an October court filing that Rad was closely involved in determining the Tinder valuation he is challenging in court.

© Reuters. Rad is seen during celebrations for Match Group's IPO at the NASDAQ stock exchange

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.