Match Group (NASDAQ:MTCH), the online dating site, has agreed to pay the Tinder founders US$441mln more than three years after it had initially been sued.
The creators of Tinder claimed that Match, and its former owner IAC, had severely undervalued the company at US$3bn when it was bought out in 2017.
However, the founders believe the valuation was massively incorrect, and that it was worth US$13bn.
The ten plaintiffs, which consist of current and former staff, were given stock options in Tinder as part of their compensation in 2014, which represented a fifth of the total valuation.
Due to Tinder being a private company, the shares could only be sold to Match and IAC on specific dates, and they were not permitted to trade and sell the shares on the open market.
As a result, Match, currently valued at US$36.6bn, and IAC paid US$600mln for Tinder in 2017, with the founders saying they had no option but to accept the US$3bn valuation.
Match Group (NASDAQ:MTCH)'s filing with the US Securities and Exchange Commission on Wednesday declared that the firm intends to pay the settlement using cash.
Its shares dropped 2% on the news to US$127.93.
Match to swipe right on Tinder settlement - Proactive Investors USA & Canada
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