LGBTQ-focused social network and dating platform Grindr (NYSE:GRND) has been sued in London in a lawsuit by multiple users over an alleged breach of data protection. The legal action comes just days ahead of Grindr’s upcoming first-quarter results.
The Accusations
Specifically, Grindr is accused of sharing users’ private information, including their HIV status and when their last HIV test took place, with third-party advertising companies without due consent. The firm filing the lawsuit in London’s High Court, Austen Hays, noted that Grindr’s actions could have affected thousands of users of the popular app in the U.K.
Grindr’s Past Woes
According to the Guardian, Grindr plans to vigorously respond to the claim. The company noted that the claim seems to be based on mischaracterization of its practices from over four years ago. Back in 2021, Grindr was fined about $6 million in Norway for a breach of European privacy laws. In 2022, the Information Commissioner’s Office in the U.K. also probed Grindr. Meanwhile, the lawsuit from Austen Hays is focused on alleged data breaches at Grindr prior to April 2018 and between May 2018 and April 2020.
GRND’s Upcoming Results
Separately, Grindr’s first quarter results are coming up on May 13. Analysts expect the company to post an EPS of $0.04 on revenue of $72.7 million for the quarter. In comparison, Grindr generated revenue of roughly $55.8 million in the year-ago period.
Is GRND Stock a Buy, Sell, or a Hold?
Notably, Grindr’s stock price has rallied by nearly 53.3% over the past year. Overall, the Street has a Strong Buy consensus rating on the stock, alongside an average GRND price target of $13.33.
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