The Tinder App Is Being Sued For $2 Billion Dollars By Co-Founders And Here's What It Means For Canadian Swipers
How do you even date without Tinder?
Bad news for all the Tinder users out there! The company IAC/InterActiveCorp and its sister company Match Group which own the popular dating/ hook up/ ghosting app Tinder, are under fire from past employees, current executives and the co-founders of the app.
In court documents released today in New York, the former employees and executives say that Match Group "repeatedly lied to the Tinder employees in order to cheat them out of the money to which they were contractually entitled" and did so by undervaluing the company's worth and allegedly forcing them out of stock opportunities that they were entitled to.
It is also stated in the court documents that the company purposely delayed the launch of their premium services in order to prevent them from having to include it in projected future growth figures. Then bulling executives into staying silent on the true worth of the brand.
The court documents take a bit of a sinister turn when later on it reveals that sexual misconduct and harassment was covered up within the company using bribery and payoffs in order for the company to succeed in their "scheme to cheat the Tinder employees".
In all, IAC/ Match is being accused of assigning the value of the company to $3 billion for 3 consecutive years all while the company was growing at a rate of 600% and having a user base growth of 50%. And then later merging the company into a holding company that essentially resulted in employee stocks becoming useless.
So what does that essentially mean for Canadian tinder users? Or any users really who have an account with the app? Well, for as of right now the app is relatively safe and will probably be safe for a while in the event of a long and drawn out court case. Meaning that you can keep swiping as per usual.
Furthermore, while it's not ALWAYS the case, most companies have a variety of business insurance policies to cover them in the event of a lawsuit. Since many of the claims made against the companies are criminal in nature there could be a chance that they aren't covered by their insurance company if found guilty of the crime. This means they would have to pay all legal fees, settlements, etc out of the company's own pocket - which could sink even the most lucrative of business owners.
Although all of this is in the hypothetical because information on the insurance agreement has not been made public along with a court decision - at this point is very much way too early to tell what the fate of Tinder will be.