Motion to Dismiss

In a putative class action in the District of Delaware against Match Group, Inc., a magistrate judge has recommended that a motion to dismiss be granted based on finding that alleged misrepresentations were non-actionable puffery, opinion, and/or forward-looking statements.  The opinion offers a useful analysis, with examples, of how these concepts are appropriately applied.

Match Group owns and operates several online dating services, including Tinder, Hinge, Match.com, and OkCupid. Plaintiffs, including a shareholder seeking to recover on behalf of all Match Group investors, brought claims under the Securities Exchange Act alleging that Match Group made material misrepresentations and omissions regarding a) the integration of Hyperconnect (a “social discovery and video technology” company acquired by Match Group); and b) the performance of two new Tinder product offerings, Explore (an interactive social discovery interface, seeking to match users based on similar interests) and Tinder Coins (an in-app currency).

The magistrate judge agreed with Match Group that the complaint should be dismissed because the statements in question were either accurate and non-contradictory, or non-actionable puffery, opinion, and/or forward-looking statements. See Bardaji v. Match Group Inc. et al., No. 1:23-cv-00245 (D. Del. June 27, 2024).Continue Reading District of Delaware Magistrate Finds Dating App Misrepresentation Claims Non-Actionable

A federal judge in the Western District of Texas recently sided with a growing trend of rulings adopting a narrow reading of the Video Privacy Protection Act (VPPA) in dismissing a putative class action against the operators of a Texas Longhorns email newsletter.  The case involved tracking pixels embedded in videos that were linked in the newsletter but posted to public websites.  The court held that because the plaintiffs had not made a durable commitment through signing up for the newsletter, and because videos were not embedded in the newsletter, plaintiffs failed to meet the definition of “consumer” as defined in the VPPA.Continue Reading Judge Highlights Trend of Narrow Reading of VPPA In Class Action Dismissal

A federal district court recently dismissed with prejudice a putative class action against the cryptocurrency exchange Coinbase, where the plaintiffs sought to hold the exchange liable for the sale of unregistered securities on behalf a nationwide class.  The court held that Coinbase neither directly sold the accused tokens to plaintiffs nor actively solicited their sale, and thus plaintiffs’ federal claims must be dismissed.  This decision has important implications for digital asset exchanges, which have faced a significant increase in class actions alleging the exchanges are themselves liable for the sale of unregistered securities.Continue Reading Court Dismisses Class Action Seeking to Hold Cryptocurrency Exchange Coinbase Liable for Sale of Unregistered Securities