Things are looking stormy for Jay Z's music streaming service, Tidal.
The company was hit with a $5 million lawsuit last week from Yesh Music Publishing and John Emanuele of duo The American Dollar.
The lawsuit, which seeks class-action status, alleges that Tidal licensed 118 songs by American Dollar without permission and without payment and deliberately miscalculated the number of streams of the band's songs by tens of millions.
"TIDAL is up to date on all royalties for the rights to the music stated in Yesh Music LLC and John Emanuele's claim, and they are misinformed as to who, if anyone, owes royalty payments to them," the company said in a statement. "The entire catalogue in question streamed fewer than 13,000 times on TIDAL and its predecessor over the past year."
Tidal notes that it has removed all music associated with Yesh Music and Emanuele.
Representatives from Yesh Music did not immediately respond to CNBC's request for comment.