IAC, Barry Diller Targeted by Pension Fund Over Match Spinoff

A pension fund sued Match Group Inc.'s board, former controlling stockholder IAC/InterActiveCorp, and billionaire businessman Barry Diller in Delaware, claiming the online dating company’s spinoff last year left it saddled with billions in debt and IAC “flush with billions in cash.”

“Match massively overcompensated IAC and its stockholders, most particularly Diller,” according to the 118-page lawsuit made public Wednesday in Delaware’s Chancery Court.

The company assumed a “mountain of debt” that will force it “to focus on deleveraging,” while IAC still controls it through “entrenching governance provisions,” the complaint says. Meanwhile, a two-year ban on most major business deals ...