SAN DIEGO, March 15, 2023 (GLOBE NEWSWIRE) —
The Class: Robbins LLP reminds investors that a shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Match Group, Inc. (NASDAQ: MTCH) securities between November 3, 2021 and January 31, 2023, for violations of the Securities Exchange Act of 1934. Match is a technology and social media company that operates one of the world’s largest portfolios of online dating brands and apps. Tinder, which generated more than half of Match’s revenue during the class period, is Match’s largest and most important brand.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Match. Shareholders who want to act as lead plaintiff for the class must file their papers by May 5, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. For more information, click here.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
What is this Case About: Match Group, Inc. (MTCH) Failed to Disclose it Would be Unable to Deliver Tinder’s Planned Product Initiatives
According to the complaint, on November 3, 2021, in a letter to shareholders, defendants touted Tinder’s “radical product transformation,” which included recently launched product initiatives such as a new “Explore” feature. Defendants further stated that “[t]he interactive and social experiences within Explore are the harbinger for Tinder’s long-term vision,” and noted that Tinder was working on several other monetization opportunities, such as an in-app virtual currency. Defendants continued to represent that Tinder was effectively executing on several critical product initiatives that would drive growth for the Company in 2022 and beyond.
On August 2, 2022, the Company announced financial results for the second quarter of 2022 and warned that it expected Tinder’s growth to slow in the second half of 2022 as the result of poor product execution. Specifically, defendants admitted that “Tinder did not deliver on its product roadmap for the first half of the year,” forcing he Company to delay the launch of several initiatives and optimizations that it had previously expected to generate growth in 2022. On this news, the price of Match common stock declined $13.47 per share, or more than 17%, from a close of $76.71 per share on August 2, 2022, to close at $63.24 per share on August 3, 2022.
On January 31, 2023, the Company again reported disappointing financial results for 2022, including total revenue that missed the Company’s prior guidance. Defendants largely attributed the shortfall to “weaker-than-expected product execution at Tinder, the effects of which became more pronounced as the year progressed.” During an earnings conference call the following day, defendants further admitted that Tinder had “decelerated as the year went on.” On this news, the price of Match common stock declined $2.71 per share, or 5%, from a close of $54.12 per share on January 31, 2023, to close at $51.41 per share on February 1, 2023.
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