Shareholder sues Match Group over safety failures amid stock jump and revenue rise

Just days before Match Group announced a 12% stock surge and a 25% increase in quarterly revenue, a shareholder filed a lawsuit accusing the company’s leadership of failing to address systemic safety issues across its apps, including Tinder and Hinge [1]. The lawsuit, filed in a California federal court, highlights internal company documents showing Match Group had been tracking users reported for sexual assault and rape as early as 2016. By 2022, its internal “Sentinel” database was recording hundreds of such reports each week [1].

The allegations emerged following an 18-month investigative report co-published by the Pulitzer Center, Calmatters, The Guardian, and The 19th. The report detailed how Match Group allowed predators to remain on its platforms for months—or even years—despite repeated reports from users. One of the most egregious cases involved cardiologist Stephen Matthews, who was reported for sexual assault in September 2020 but remained active on Match Group’s apps until law enforcement arrested him in January 2023. In 2024, he was convicted of drugging 10 women and sexually assaulting eight, and sentenced to 158 years in prison [1].

The lawsuit claims that Match Group’s leadership, including current CEO Spencer Rascoff and former CEO Bernard Kim, knew of these risks but prioritized growth over user safety. It cites discrepancies between what the company publicly disclosed and what internal documents allegedly showed. For instance, the complaint alleges that the drop in Tinder’s monthly active users in November 2024 was not due to market competition or economic factors, but rather users losing trust in the platform after repeated exposure to predators [1].

Match Group responded to the investigation by stating it “vigorously combats violence” and “takes every report of misconduct seriously,” yet it has not fulfilled a previously stated promise to release a comprehensive report on the safety risks faced by users [1]. The lawsuit further argues that the board’s inaction constituted breaches of fiduciary duty and securities law, and calls for corporate governance reforms, restitution of executive pay, and recovery of company costs.

As the world’s largest dating app company with an $8.8 billion valuation, Match Group operates over a dozen platforms. The case, brought by a shareholder on behalf of the company, seeks to hold executives and directors accountable for their alleged failures in protecting users and managing internal risks [1].

The lawsuit also highlights the personal stories of victims, such as one who reported being drugged and assaulted by Matthews. She escaped and reported the incident, but by then, two other women had already reported him. Despite this, the company did not act until he was arrested [1].

The case now raises broader questions about corporate responsibility in digital spaces where users are vulnerable to harm. It is not only a legal challenge but also a call for systemic change in how companies like Match Group manage safety, transparency, and accountability.

Source:

[1] Match Group’s rape problem: A lawsuit alleges that inaction by Tinder and Hinge’s owner allowed abusers to stay on the apps, (https://fortune.com/2025/08/08/match-group-tinder-hinge-lawsuit-rape-assault-sentinel/)