Tinder app stockholders file business litigation against owners
Many California readers are familiar with the Tinder mobile app. For those who are not, it is a mobile social app that allows people to connect and chat and is often used as a dating site. Tinder is owned by InterActiveCorp, and its owners were recently named as defendants in business litigation filed by a group of its first stockholders.
The plaintiffs were some of Tinder's earliest employees during its foundation phase. In fact, several of them are co-founders of the company. They claim that their stock options have been highly depleted because of underhanded actions IAC took to keep them from participating in the app's future success. The plaintiffs say IAC intentionally submitted a low valuation of Tinder before it merged with Match Group.
Match Group happens to be a publicly traded company, but Tinder is not. When the plaintiffs became stockholders, they were given four dates on which they could exercise their options. Their legal claim against Tinder states that before the first date arrived IAC undervalued the company at $3 billion, which left them with less stock options with Match Group once the merger took place.
Business litigation is often complex, sometimes taking weeks or months to resolve. Those in California facing similar problems may want to consult with experienced business law attorneys before filing their claims. An experienced attorney knows how to protect the interests of his or her clients and can determine the best course of action to try to achieve a favorable result in court.
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