Breach of Contract Litigation Settles for Analysis Group Client
December 20, 2021
Analysis Group was retained on behalf of IAC/InterActiveCorp and Match Group, the defendants in a breach of contract litigation filed by early employees and executives of Tinder, the mobile dating app. In the case, the plaintiffs alleged that the defendants breached their employment contracts providing for an independent valuation of Tinder in 2017 as part of valuing their stock options. The plaintiffs claimed that their stock options were undervalued as a result, and pursued damages in excess of $2 billion.
Catherine E. Tucker, Analysis Group’s affiliated expert, testified at trial. Professor Tucker effectively described to the jury the economics of digital platforms, including network effects, the S-curve of diffusion, and the challenges and opportunities involved in monetizing a “freemium” product. She also explained why, given the economics of digital platforms and product adoption, the financial projections of Tinder at the time of the valuation were reasonable and the plaintiffs’ expert’s projections were unreliable.
An Analysis Group team, including Managing Principal Michael Holland and Vice President Laura Comstock, supported Professor Tucker’s preparation for testimony at the trial. The case, Sean Rad, et al. v. IAC/InterActiveCorp, et al., settled prior to jury deliberations.