Match says Bumble is dropping its $400M lawsuit, but this battle isn’t over

Bumble and Match’s ongoing legal battles are continuing today. According to a statement released by Match Group this morning, Bumble is dropping its $400 million lawsuit against Match, which had claimed Match fraudulently obtained trade secrets during acquisition talks. However, Bumble is preparing to refile its suit at the state level, we’re hearing.

If you haven’t been following, the two companies have been doing battle in the court system for some time after Match Group failed to acquire Bumble twice – once in a deal that would have valued it at over $1 billion.

Bumble claimed Match then filed a lawsuit against it to make Bumble appear less attractive to other potential acquirers. Match’s suit claims Bumble infringed on patents around things like its use of a stack of profile cards, mutual opt-in, and its swiped-based gestures – things Tinder had popularized in dating apps.

Bumble subsequently filed its own lawsuit in March 2018, this one claiming that Match used acquisition talks to fraudulently obtaining trade secrets. It says this is not a countersuit, but its own separate suit. (This is the one being discussed today by the companies.)

Match says it wasn’t served papers for Bumble’s suit. But Bumble CEO Whitney Wolfe had said they delayed serving papers to give Match a chance to settle.

After a failure to settle, Bumble announced on September 24, 2018 that it would be serving Match, and shared news of its IPO plans. The $400 million suit claims Match had asked for “confidential and trade secret information” in order to make a higher acquisition offer for Bumble, but that no subsequent offer came as result.

Match says Bumble asked the courts to drop its lawsuit just a few weeks after this announcement, and believes the whole thing is just a PR stunt around Bumble’s IPO.

Match today says it’s not opposed to the lawsuit being dropped. But it is now seeking declaratory judgements that will force these issues to be litigated in the right forums, it says.

It points out that Bumble had filed its state petition in Dallas County, rather than respond with counterclaims to Match’s suit in the Western District of Texas – “less than 100 miles from Bumble’s Austin headquarters.”

It asked the case to be transferred to federal courts in the Western District, where its IP case is pending.

Now, Match says that Bumble is asking the courts to drop its claims against Tinder’s parent company.

“We’re not opposing their request to dismiss their own claims, but we’re seeking declaratory judgements that will force these issues to be litigated in the right forums,” says a Match spokesperson. “As we say in section 132 of the amended counterclaim: ‘Match will not simply wait until Bumble decides whether or not it wants to pursue these claims – likely in connection with Bumble’s next media blitz. Match intends to litigate these baseless allegations now, and Match intends to conclusively disprove them.’”

Bumble responded this morning, by saying it plans to continue to defend its business against Match.

“Match’s latest litigation filings are part of its ongoing campaign to slow down Bumble’s momentum in the market. Having tried and failed to acquire Bumble, Match now seems bent on trying to impair the very business it was so desperate to buy,” a Bumble spokesperson says. “Bumble is not intimidated and will continue to defend its business and users against Match’s misguided claims.”

It declined to comment on how, but we understand that the change from a state court system to federal courts is in play here. Bumble wanted to litigate at the state level, which means it has to dismiss its claims in the federal courts. Match could then accurately say Bumble’s lawsuit is being dropped, but that doesn’t necessarily mean Bumble’s plans have changed.

We understand that Bumble is now preparing to refile its case in the state court system, but it hasn’t done so yet.