Securities Law Firms File Class Action Lawsuit Against Match Group

A group of class action lawsuits have been filed in the U. S. District Court on behalf of investors who purchased shares of Match Group stock between November 3, 2021 and January 31, 2023. The lawsuits allege that the company misled investors as to financial expectations and new product executions that Match Group was claiming to initiate.

According to law firm Bernstein Liebhard LLP, a lawsuit was filed in the U.S. District Court for the district of Delaware and alleges “violations of the Securities Exchange Act of 1934.”

According to the press release from Kaskela Law, LLC, throughout the dates named in the lawsuit, Match Group and its executive officers “falsely represented to investors” that Tinder was moving forward with critical product initiatives to drive growth for the company in 2022 and going forward. In addition to this, other lawsuits have been filed on behalf of investors with Kessler Topaz Meltzer & Check, and Bernstein Liebhard LLP, among others.

One lawsuit said that Match Group touted Tinder’s “radical product transformation” in investor meetings, and that it was working on monetization opportunities such as in-app currency. Throughout the period named in the lawsuit, the company assured investors it was on track to deliver in 2022, but in August of 2022, during a report on second quarter earnings, Match Group admitted that “poor product execution” would slow growth for the second half of 2022, and that “Tinder did not deliver on its product roadmap for the first half of the year.” Tinder delayed the launch of several initiatives, including in-app currency, and halted its research and testing of metaverse dating.

The company hired Bernard Kim as CEO in May of 2022, and he has since appointed a new executive team and is leading the company’s star app himself. Kim has also hired a new Chief of Technology to guide the company’s product direction, and is refocusing its efforts on Tinder, Hinge, and growing markets in Asia.

But as the Bernstein lawsuit alleges, despite Match Group’s revelations, it continued to assure investors, and that the new team Kim put in place was executing on its promises, noting the company told them that “product executive is already improving,” and “early results are showing promise.” However, in January 2023, Match Group reported disappointing earnings again.

The law firms are encouraging investors who bought shares of Match Group during this time period to get in touch with them to join the class action lawsuits.