A recent lawsuit brought against Jay-Z has been dismissed.
According to Reuters, a Delaware judge has officially dismissed a class action suit filed against the entertainer, his business partner Jack Dorsey, and other board members of Block Inc. — previously known to the world as Square — for reportedly approving the purchase of Jay-Z’s TIDAL streaming platform by the payments company.
The Transaction In Question
Block made a deal to purchase an 87.5% stake in TIDAL for $306 million. Following adjustments, Block paid $237.3 million, giving it an 86.2% stake in the company.
The suit claimed that Dorsey, who is the co-founder of Block and Twitter, was the only top executive at the payments company in support of the purchase due to his friendship with Jay-Z.
While the complaint used a quote from a New York University business professor saying that the transaction was “a $300 million bar tab to hang out with Jay-Z,” the Delaware judge ruled that there was not enough substantial evidence surrounding the claims.
Chancellor Kathaleen McCormick of Delaware’s Chancery Court ruled that the Florida pension fund, which led the case, was unable to prove that the Block directors did anything wrong. However, it was noted that the purchase “seemed, by all accounts, a terrible business decision.”
She also said that she was unable to “presume bad faith based on the merits of the deal alone.”
Following the TIDAL transaction, the “4:44” emcee assumed a role on Block’s board and continues to hold his position as a director today.