Shares of Match Group, Inc. (MTCH) - Get Report edged lower in after-hours trading Friday after the company disclosed in an SEC filing that it has received a grand jury subpoena from the Department of Justice in connection with a Federal Trade Commission suit filed earlier this week.
The company said the subpoena, received Thursday, "seeks documents relating to certain of the marketing-related claims in the FTC's complaint," according to the filing.
Shares of the corporate parent of Match.com, Tinder and OkCupid fell 45 cents, or 0.6%, to $71.96 in after-hours trading.
The FTC suit alleges the dating services owner promoted what it knew to be fake profiles to lure potential subscribers.
Match.com has been under investigation since March of 2017, according to the filing. The company and the FTC failed to reach agreement on a settlement proposal last November that would have had it make a $60 million payment, according to the filing.
During the regular session Friday shares of Match.com rose, ending up 97 cents at $72.41 after earlier trading as high as $74.15.
The move followed an upgrade by Evercore ISI to outperform from in-line, with analysts setting a $95 price target. In addition, analysts at Bank of America Merrill Lynch Thursday reiterated their buy rating on Match Group's stock and their $102 a share price target, arguing that consumers are largely aware of the existence of spam accounts and that the negative headlines will have only a limited impact on consumer interest in online dating.
Match has blasted the FTC's allegations as "completely meritless" and said it catches 85% of fake accounts within the first four hours after they are created.
"The FTC has misrepresented internal emails and relied on cherry-picked data to make outrageous claims and we intend to vigorously defend ourselves against these claims in court," the company said in a statement earlier this week.
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