A lawsuit was filed Tuesday by Tinder founders and managers against the current owners of the app. It's an interesting case -- not just because it has well-known parties -- but it also highlights some key issues in contract and corporate law: the importance of valuation and who controls valuation inputs; the duty of good faith and fair dealing in complying with contractual obligations; and the use of equity compensation. The plaintiffs could get a boost because Match Group is publicly traded and had to share information about Tinder's financial performance with the public under the federal securities laws--which would not be true of a privately held corporation. Let's stay tuned.
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