On Thursday, the lead plaintiff filed a motion to certify a class of Match Group Inc. shareholders allegedly harmed by the company’s misrepresentations that caused its share price to tumble. This week’s motion asserts that the case is well-suited for class treatment and meets the applicable procedural requirements.
The key allegations concern the dating app company and its executives’ reported inflation of financial performance and forecast metrics disseminated to the public. In part, the complaint alleges that the defendants failed to account for fake or “bot” accounts that actually comprised 15-20% of the dating websites and apps’ touted user bases. Initially, the Northern District of Texas dismissed the securities fraud complaint, citing numerous deficiencies.
In November 2021, the court permitted the plaintiff’s claims to proceed despite Match Group’s second round of arguments in favor of dismissal. The court found that the plaintiff adequately specified at least some allegedly misleading statements or omissions and established an inference of scienter requisite to survive dismissal.
In this week’s motion, the plaintiff reiterates that the lawsuit stems from “common factual allegations that Defendants concealed and failed to sufficiently address widespread fraudulent and bad actor accounts on Match’s branded websites and apps on a scale that materially impacted … Match’s user metrics and reported results, while they misrepresented the purported integrity of Match’s user base, the strength of its anti-fraud measures, and the favorability of trends underlying its financial performance.”
The plaintiff implores the court to grant the motion “expeditiously,” as the lawsuit exemplifies a “quintessential securities fraud class action” plainly suited for disposition as a collective action on part of aggrieved shareholders. “All requirements for class certification are readily met,” the motion contends.
The plaintiffs also request an order appointing Pomerantz LLP and Glancy Prongay & Murray LLP lead counsel and Kendall Law Group PLLC local counsel. Match Group and the individual defendants are represented by Norton Rose Fulbright US LLP.