SAN DIEGO & DALLAS--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a class action complaint was filed in the U.S. District Court for the Northern District of Texas. The complaint alleges that officers and directors of Match Group, Inc. (NASDAQGS: MTCH) violated the Securities Act of 1933 in connection with the company's November 20, 2015 initial public offering ("IPO") by issuing a Registration and Prospectus that misleadingly represented the state of Match Group's business. Match Group provides dating products and operates a portfolio of approximately 45 brands, including Match, OkCupid, and Tinder. In addition to its dating business, Match Group also provides various test preparation, academic tutoring, and college counseling services.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/shareholders-rights-blog/match-group-inc
Match Group Accused of Misleading Investors About the State of its Business
According to the complaint, on November 20, 2015, in connection with its IPO, Match Group filed a final prospectus (the "Prospectus") with the U.S. Securities and Exchange Commission. The complaint alleges that Match Group misleadingly led investors to believe that the company's Princeton Review business was expecting profitability for the first time. The statement was allegedly misleading because Match Group officials knew and failed to disclose that fourth quarter 2015 revenue and financial results would be adversely affected by two items: 1) delayed execution of a U.S. government contract that resulted in a revenue shortfall of millions of dollars; and 2) a "greater than anticipated slowdown" in SAT preparation business clients during the fourth quarter 2015 due to a revamp of the test.
Match Group also stated in the Prospectus that although Average Revenue per Paying User ("ARPPU") for some of its dating services had declined, the company saw continued ability to increase price at many of its brands. The complaint asserts these statements were materially false because ARPPU was dropping heavily at the time they were made, revealing a 14% decline in the fourth quarter 2015 compared to the fourth quarter 2014. Further, a Match Group official revealed during a February 3, 2016 conference call that the company knew after the second quarter 2015, long before the Prospectus was filed, that there would be a fourth quarter drop in ARPPU.
Match Group Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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