Lawsuits

Jay Z, Kanye West sued over 'Pablo' distribution

Kanye West, Jay Z's Tidal slapped with lawsuit
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Kanye West, Jay Z's Tidal slapped with lawsuit

Streaming service Tidal was hit with a lawsuit on Monday alleging the owner Jay Z and rapper Kanye West used deceptive marketing practices.

The lawsuit, filed by Edelson PC, claims that the streaming service acquired $84 million in personal data and credit card information from users by offering exclusive access to West's newest album, "The Life of Pablo," according to Variety.

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The Grammy Award-winning showman had said publicly that the "Pablo" album would "never ever" appear on Apple Music or iTunes, and claimed he would not sell it to collectors, as Wu-Tang Clan did with an album sold to embattled pharmaceutical executive Martin Shkreli.

However, although it started as a Tidal exclusive, West's album soon became available on other services such as Pandora, Spotify and, yes, Apple.

The lawsuit, which names West, Jay Z and Tidal, claims that users were lead to believe that the only way to obtain the album was through the streaming service, thus prompting a mass increase in subscriptions. It is estimated that the company's value increased by $60 million based solely on the buzz created by Tidal's exclusive album release, according to the Washington Post.

The lawsuit is seeking class-action status.

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Representatives from Tidal did not immediately respond to CNBC's request for comment.

Tidal was hit with a $5 million class-action lawsuit last month, which alleged that the streaming service licensed 118 songs by American Dollar without permission or payment payment and deliberately miscalculated the number of streams of the band's songs by tens of millions.

The company has faced turbulence since its relaunch in 2015. Tidal's executive team has remained in flux, with three different CEOs taking the helm in less than a year. It has also replaced its chief investment officer and senior vice president of artist and label relations, according to Billboard.