![]() ![]() Tidal and Jay-Z, who now sits on Block’s board, aren’t named as defendants.Īccording to the complaint, Tidal was plagued “almost from day one by a maelstrom of dysfunction and controversy” after a consortium of recording artists led by Jay-Z bought the company for $56 million in 2015 and sought to build a musician-friendly streaming service.īy mid-2020, those efforts had allegedly proven a failure. “The market appears to recognize the deal for what it was: a strategically dubious transaction at a wildly inflated valuation, obviously driven by Dorsey’s personal friendship with Carter and reflecting a significant governance failure at the company,” the derivative suit says.īlock declined to comment through a spokesperson Wednesday. News of the transaction, which made no business sense, sent Square’s price plunging 7% in March 2021, “wiping out billions of dollars of market capitalization,” according to the heavily redacted complaint in the Delaware Chancery Court. The lawsuit, made public Wednesday, accuses Dorsey of forcing through the acquisition of Tidal-which was “beset by controversy,” including fraud allegations-after hatching the plan with his “close personal friend,” also known as Shawn Carter, during a yacht cruise in the Hamptons in 2020. ![]() A pension fund filed suit in Delaware against Jack Dorsey and several other board members at Block Inc.-the former Square Inc.-challenging the payment processor’s $237 million deal for a majority stake in Tidal, the “failed” streaming service backed by music mogul Jay-Z. ![]()
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