Judge nixes Block shareholder suit over online music deal

A Delaware judge has dismissed a shareholder lawsuit against financial technology company Block Inc. over its 2021 acquisition of majority ownership in a music streaming service partly owned by rapper Jay-Z. The shareholder alleged that Block's founder and CEO Jack Dorsey and the company’s board of directors breached their fiduciary duties in agreeing to pay roughly $300 million to take control of Tidal. At the time, the streaming service was failing financially and the target of an ongoing criminal investigation. The judge ruled Tuesday that the shareholder failed to demand that Block’s board pursue legal action itself before filing a derivative lawsuit on behalf of the company.