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C Tidal—a subscription-based musicstreamingserviceownedbyDefendants. PlaintiffBaker- “Defendants”), basedupon theirconductoffraudulentlyinducingconsumers to subscribe Trial againstDefendantsS.CarterEnterprises,LLC (“SCE”)andKanyeWest(collectively E [email protected] Todd M.Logan(SBN305912) Counsel forPlaintiffandthePutativeClass *Motion foradmissionprohacvicetobefiled Fax Tel: 312.589.6370 Chicago, Illinois60654 350 NorthLaSalleStreet,13thFloor E [email protected] Jay Edelson* Fax: 415.373.9435 Tel: 415.212.9300 San Francisco,California94107 329 BryantStreet,Suite2C Defendants. d/b/a TIDAL, KANYE WEST,anindividual,together Delaware limitedliabilitycompany,and S. CARTERENTERPRISES,LLC,a v. Plaintiff, on behalfofallotherssimilarlysituated, JUSTIN BAKER-RHETT,individuallyand DELSON DELSON LASS : 312.589.6378 A Plaintiff JustinBaker-RhettbringsthisClassAction ComplaintandDemandforJury CTION Case 4:16-cv-02013-KAWDocument1Filed04/18/16Pageof26 PC PC C OMPLAINT FOR THENORTHERNDISTRICTOFCALIFORNIA IN THE UNITED STATES DISTRICT COURT IN THEUNITEDSTATESDISTRICTCOURT
SAN FRANCISCO DIVISION SAN FRANCISCODIVISION
DEMAND FORJURYTRIAL (4) (3) (2) (1) FOR: CLASS ACTIONCOMPLAINT Case No.: Unjust Enrichment. Fraudulent Inducement;and Code §§17200,etseq.; ofCal.Bus.&Prof. Violations Code §17500; ofCal.Bus.&Prof. Violations
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tripling itsconsumerbasefrom1millionto3subscribersin just overamonth. profound impactonTidal’sbusiness.Newsubscriptionstothestreamingplatformskyrocketed, C 3 2 1 attention, purchased in2015andsubsequentlythrustintothepublicdialogue. attorneys: and, astoallothermatters,uponinformationandbelief,includinginvestigation conductedbyhis Rhett allegesasfollowsuponpersonalknowledgetohimself andhisownactsexperiences According toTidal,TheLifeofPablowasstreamed250milliontimesinthefirst10days. Each 2016). -exclusively-releasing-kanyes-album/ (lastvisitedApril18, subscriber-numbers-surge-after Digital MusicNews(Feb. 24,2016),http://www.digitalmusicnews.com/2016/02/24/tidal- exclusivity-have-been-gr-234694 (lastvisitedApril 18,2016). exaggerated, A.V.Club(Apr.1,2016),http://www.avclub.com/article/reports--pablos-tidal- life music-service-1201462769/ (lastvisitedApril18, 2016). Event (March30,2015),http://variety.com/2015/digital/news/jay-z-launches-tidal-streaming- get itonTidal.” the “albumw[ould]neverbeonApple.Anditwillforsale…Youcanonly album “TheLifeofPablo”exclusivelyonTidal.Specifically, Mr.WestpromisedonTwitterthat superstar KanyeWest,whoownsaportionofTidal,promisedtoreleasehislonganticipatednew publicity. experts predicteditsimminentdemiseabsentasignificantswellinusersandnewroundof
LASS A 5. 1. 2. See CharlotteHassan,KanyeMayHaveSingle-Handedly DoubledTidal’sSubscribers… , See DanetteChavez,ReportsofTheLifePablo’sTidalexclusivityhave beengreatly See ToddSpangler,JayZLaunchesTidalStreaming-MusicService atStar-Studded 3. 4. CTION 1 Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page2of26 dedicatedsubscribersdidnotfollow. Mr. West’sunequivocaldeclarationofTidal’sexclusiveaccesstohisalbumhada Tidal isamusicstreamingservicethatmogulShawn“JayZ”Carter Though Jay-Z’sstar-studded2015“re-launch”garneredTidalsignificantmedia By early2016,Tidalwasquietlyteeteringonthebrinkofcollapse.Manyindustry Fortunately forTidal,helparrivedjustinthenickoftime.Internationalhip-hop C 2
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C 4 as much$84milliontoTidal. new usersacquiredasaresultofitspurportedly exclusive accesstoTheLifeofPabloareworth result, Tidal’svaluation—thelifebloodofanynew startup—soared. credit cardnumbers,andsocialmediainformationofmillionsdeceivedconsumers.Asa streaming numberswerethroughtheroof,andTidalhadcollected personal information, deceptive marketingployhadserveditspurpose: Tidal’ssubscribernumbershadtripled, online marketplace. biggest competitors,AppleMusicandSpotify.Healsobegansellingthealbumthroughhisown half afterTheLifeofPablo’sinitialrelease,Mr.Westmadethealbumavailable through Tidal’s access toTheLifeofPablothatTidalsubscriberswerepromisedwasshortlived.Amonthanda financial dataofitsmorethantwomillionnewsubscribers. enormous benefituponTidal:atripledsubscriberbase,repletewithaccesstothepersonaland minors asyoung13yearsold. identifiable information.Alarmingly,Tidalspecificallytargetedthe“personalinformation”of that consumer’semailaddress,socialmediaaccount information,andotherpersonally For eachnewTidalsubscriberwhosignedupasaresultofMr.West’sclaims, Tidalobtained trial, submittedacreditcardtobechargedoncethetrialended. new subscriberthatsignedup,includingthosewhoupfora“free”(i.e.,negativeoption) great cost.Consumerswere uniformlytrickedintohandingovertheirprivate dataandcreditcard
LASS A 10. 9. 8. 7. 6. See infra,¶42. 11. CTION Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page3of26 Using publicallyavailableacquisitionsasacomparable metric,the twomillion By thetimeMr.Westchangedcourseandbroadlyreleased Contrary toMr.West’srepresentations,however,thepurportedly“exclusive” Mr. West’spromiseofexclusiveaccesstoTheLifePabloconferredan Mr. West’spromiseofexclusivityalsohadagraveimpactonconsumerprivacy. Unfortunately for millions of American consumers, Tidal’s windfall cameata Unfortunately formillionsofAmericanconsumers, Tidal’swindfall C OMPLAINT
4
3 The LifeofPablo,the C ASE
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C 5 State ofCalifornia,andtheUnitedStates. Broadway, NewYork,York10018.SCEconductsbusinessthroughoutthisDistrict,the under thelawsofStateDelawarewithitsprincipalplacebusinesslocatedat1411 California. millions ofAmericanconsumersintopayingforTidal’srescue. not wantingtoinvesttheirownmoneysavethecompany—chosefraudulentlyinduce exclusively ontheTidalplatform. Tothecontrary,they—knowingthatTidalwasintroublebut information byasingularmistruth. other-people-s-money-for-business-projects (lastvisitedApril18,2016). http://www.eonline.com/news/740077/kanye-west "Other People's Money" forBusinessProjects (Feb.15,2016)(emphasis added), to useotherpeople'smoney .” SeeKanyeWestExplains He's"Personally Rich" ButNeeds thefirstruleis place thatsomanyartist endup…Alsoforanyonethathas moneytheyknow world…If Ispentmymoneyonideascould notaffordtotakecareofmyfamily.Iamina for myfamily…butIneedaccesstomoremoney inordertobringmorebeautifulideasthe advance hisbusinessinterests,stating:“Yes Iampersonally richandIcanbuyfurshouses monetization effortsrelyingontheillegallyobtainedinformation. outstanding negativeoptionsofanyfreetrialscreatedduringtheclassperiod,andcease delete theprivateinformationofPlaintiffandClassmembersthatitcollected,cancel Defendants’ profits,andrestitution.Additionally,Plaintiff seeks anorderrequiringTidalto andaputativeClass,bringsthislawsuitseekingdamages,disgorgementof on behalfofhimself Mr.Westhasboastedofhischoicetouseconsumers’money—instead own—to LASS A 16. 15. 14. 12. 13. CTION Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page4of26 Defendant KanyeWestisanaturalpersonandcitizenoftheStateCalifornia. Defendant S.CarterEnterprises,LLC,isalimitedliability company existing Plaintiff JustinBaker-RhettisanaturalpersonandcitizenoftheState In reality,neitherMr.WestnorSCEeverintendedTheLifeofPablotorun To obtainredressfromthesedeceptivemarketingpractices,PlaintiffBaker-Rhett, C OMPLAINT
PARTIES 4
-explains-he-s-personally-rich-but-needs- 5
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the world.Withinamonthofacquiringcompany, JayZannouncedthatTidalwould“bethe C 6 Defendant SCE(whichiscontrolledbyJayZ)acquired Aspiro. by acompanynamedAspiro. The TidalMusicService Francisco Division. Plaintiff residesinthisDistrict. Complaint occurredinandemanatedfromthisDistrict. Venueisadditionallyproperbecause transact significantbusinessinthisDistrictandasubstantialpartoftheeventsgivingriseto Complaint occurredinandemanatedfromthisDistrict. consumer andbusinesscontractsinthisDistrict,theunlawfulconductalleged significant businessinthisDistrict,includingsoliciting consumerbusinessandenteringinto and (iii)noneoftheexceptionsundersubsectionapplytothisaction. Defendants, (ii)theamountincontroversyexceeds$5,000,000,exclusiveofinterestandcosts, because (i)atleastonememberoftheputativeClassisacitizenstatedifferentfrom press-release-Panther-protected.pdf (lastvisitedApril18,2016). to theshareholdersofAspiro AB,http://www.aspiro.com/wp/wp-content/uploads/2015/01/Offer-
LASS A 23. 17. 22. 21. 20. 19. 18. See ProjectPantherBidco LtdlaunchesarecommendedcashofferofSEK 1.05pershare CTION Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page5of26 After acquiringAspiro,JayZwastednotimeannouncing hisplansforTidalto This Courthasjurisdictionoverthisactionpursuantto28 U.S.C.§1332(d)(2), Soon thereafter,ProjectPantherBidCoLtd.,aholding companycreatedby Tidal wasoriginallylaunchedin2014asahighfidelitymusic-streaming platform Pursuant toCivilLocalRule3-2(d),thiscaseshouldbeassignedtheSan Venue isproperinthisDistrictunder28U.S.C.§1391(b)becauseDefendants This CourthaspersonaljurisdictionoverDefendantsbecausetheytransact C OMPLAINT
INTRADISTRICT ASSIGNMENT JURISDICTION ANDVENUE FACTUAL BACKGROUND 5 6
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(identifying morethan21.9 millionfollowersofMr.WestonTwitter). twitter-kanye-west Blue, SPIN(March30,2015), http://www.spin.com/2015/03/jay-z-tidal-streaming-launch-blue- subscriber baseandtheirownalbumsales.SeeFigure1. relied uponbybothTidalinitsowncapacity,aswellowner-artists tobuoytheservice’s C 11 10 9 8 7 Aldean, J.Cole,andMadonna.” Fire, Usher,NickiMinaj,Coldplay,AliciaKeys,CalvinHarris,DaftPunk,deadmau5,Jason streaming homeforartistslikehimself,Beyonce,Rihanna,KanyeWest,JackWhite,Arcade platform. for creatingTidalexclusivecontenttodriveconsumersthesubscriptiononly streaming accounts tospreadwordofTidal’sre-launchtheirmassiveTwitterfollowings. promoting Tidal.JayZandotherstakeholders,includingMr.West,leveragedtheirTwitter has over21millionTwitterfollowersalone. visited April18,2016). http://www.billboard.com/articles/news/6509498/ jay-z-tidal-launch-artist-stakeholders (last With 16ArtistsStakeholders,billboard(March30,2015) Who-Owns-TIDAL- (lastvisitedApril18,2016). z-tidal-launch-artist-stakeholders (lastvisitedApril 18,2016). Stakeholders, billboard(March30,2015),http://www.billboard.com/articles/news/6509498/jay- West. Aldean, J.Cole,Madonna,NickiMinaj,Rihanna,Usher,JayZhimself,andDefendantMr. Chassagne, Beyonce,CalvinHarris,ChrisMartin,DaftPunk,deadmau5,JackWhite,Jason service. Itsinitialstakeholdersincludedworld-renowned artistsAliciaKeys,WinButler,Regine
LASS 8
A See KanyeWest,Twitter https://twitter.com/kanyewest (lastvisited April 18,2016) See JamesGrebey,JayZ’sNewTidalStreamingServiceHasTurned Everybody’sAvatar
24. 25. See AndrewFlanaganandHampp,It’sOfficial:JayZ’sHistoricTidalLaunches See WhoOwnsTIDAL,TIDAL,https://support.tidal.com/hc/en-us/articles/203055651- See AndrewFlanagan,It’sOfficial:JayZ’sHistoricTidalLaunchesWith16Artists CTION 9 Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page6of26
Each owner/artistwasofferedathreepercentstakeinthecompanyexchange The foundingstakeholdersalsocommittedtheirsocialmediapresenceto C OMPLAINT -arcade-fire-third-man/ (last visitedApril18,2016).
7 Tidalwasalsotoutedasthefirst“artistowned”streaming 11 ) Twittermass-marketinghasbeenperpetually 6 10 (KanyeWest C ASE
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Exclusive ReleaseofTheLifePablo traditional newssitesin February 2015alone). using keywordsassociated withMr.Westinblogs,socialmediaplatforms, Twitter,and (discussing theuseofasocial mediamonitoringtooltoidentifyoverten million conversations at-kanye-wests February onsocialmedia,cramer-krasselt,http://c-k.com/yeezyseason-by-the-numbers-a-look- promotional processofhispersonalcelebrity“brand”). twitter-kanye-west (lastvisitedApril18,2016)(noting Mr.West’suseofTwitteraspartthe http://www.theguardian.com/music/2016/feb/19/social-media-damaging-music-industry-pr- music industry,theguardian(Feb.19,2016), cover-theres-a-good-reason-he-was-chosen (lastvisitedApril18,2016). http://www.bustle.com/articles/76739-kanye-west Cover &There’sAGoodReasonHeWasChosenForTheHonor,Bustle(April16,2015), visited April18,2016);KadeenGriffiths,KanyeWestMakesTIMEMagazine’sMostInfluential April 18,2016);KanyeWest,TheGrammys,http://www.grammy.com/artist/kanye-west(last http://www.rollingstone.com/music/lists/500-greatest-albums-of-all-time-20120531 (lastvisited announcement thathisalbum(thentitled“Swish”) wouldbereleasedinFebruary,2016). album-release-date/in/10737069 (lastvisitedApril18,2016)(reportingonMr.West’s Verge (Jan.8,2016),http://www.theverge.com/2016/1/8/10739674/kanye-west media andpublicatlarge. Twitter feedisregularlyatthecenterofamaelstromdiscussionandscrutinybyboth tweets thatareoftenwidelyreportedon by thepopularmedia. with nearly22millionTwitterfollowers(althoughhehimselfonlyfollowsoneperson)and C 19 18 17 16 15 twice. honor ofhavingbeenselectedasoneTimeMagazine’smostinfluentialpeopleintheworld, three albumsincludedonthe2012RollingStone“500GreatestAlbumsofAllTime”list,and innovations totherapgenre.Mr.Westisamusicalparagon,withtwenty-oneGrammyawards, of Pablo,onTidal.
LASS 16 A See KanyeWest,Twitter,https://twitter.com/kanyewest (lastvisited April 18,2016). See #YeezySeasonbythenumbers:AlookatKanye West’sbeautifuldarktwisted See HarrietGibsone,NosuchthingasbadPR:Issocialmediasaving ordamagingthe See 500GreatestAlbumsofAllTime,RollingStone(May31,2012), See JamiesonCox,KanyeWest’snewalbumSwishiscomingoutonFebruary11th,The 30. 28. 29.
CTION Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page8of26 -beautiful-dark-twisted-february-on-social-media/ (lastvisitedApril18, 2016) Despite Mr.West’swildsuccessandpopularity,hispersonalclaimasthe Defendant Westisknowntheworldoverforhisartisticcontributionsand Due toMr.West’sunbridledsuccessandoutspokensocialmediapresence, C OMPLAINT 15
18
Asaresult,Mr.Westhasdevelopedrobustanddevoutfanbase, 8 -makes-time-magazines-most-influential- -swish -new- C ASE
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https://verify.sheerid.com/tidal-student/?vsid=464a1150-ae0d-4b99-863a-9fc6ee1ff63d (last Editorial Newsletterand getweeklyupdatesfrom ourmusicexperts.” visited April18,2016). http://www.theguardian.com/media/2016/mar/31/jay-z-tidal-owners-schibsted-verdane (last (last visitedApril18,2016). http://www.forbes.com/sites/tristanlouis/2013/08/31/how-much-is-a-user-worth/#febe46592a9b Much IsAUserWorth?(Aug.31,2013), models needtoworkoutaboutthesamejustify thevaluations.”) $80Bn). Otherpopularsocialappsarevaluedaround $20to$50peruser.Themonetization = $1B).Facebookisvaluedatabout$100peruser or$80billion($100/userX800Musers= 2016) (FacebookacquiredInstagramforabout$30 peruser,or$1billion.($30/userX33Musers http://fortune.com/2012/04/10/why-instagram-is-worth-1b-to-facebook/ (lastvisitedApril18, 540,000 reportedtousbythepriorowners.” $57 millionpurchasepricebecause“thetotalnumberofsubscriberswasactuallywell belowthe overinflating subscribernumbers.SCEisreportedlyseekingatleast$15millionbackfromits is preparingtosuethetwoentitiesitpurchasedTidalplatformfromforallegedly Tidal’s userbasetranslatestobetween$60and$84millioninascertainablenewvalue. Facebook, Twitter,andLast.fm. information, whichmayincludelinkstotheirpersonalsocialmediaaccounts,including subscribe toTidal,consumersarerequiredprovide their emailaddressandothercontact would beatleast$60milliontothecompany’soverallvalue. new subscribersandtheirinformationgainedthroughTheLifeofPablofalserepresentations
C 37 36 35 34 user. can beappliedtoFacebook’s2012purchaseofInstagramfor$1billion,oraround$30per they attend(orpreviouslyattended),oreventheircurrentmilitarystatusandbranchofservice. “plans,” consumersmaybepromptedtoprovideTidalwithinformation regardingtheschool even widerarrayofuserdataandinformation.Additionally,inordertosecurecertainpackage Thesignupprocessalsoincludes apre-checkedboxthatstates,“Signup fortheTIDAL LASS 34 UsingthepriceperusermetricsappliedtoWhatsAppandInstagram,inflationof A See TIDALStudentPlan informationverificationportal,TIDAL, See KylieNoble,JayZ‘preparingtosue’formerTidalowners (Mar.31,2016), See WhyInstagramisworth$1BtoFacebook(April10,2012), 44. 45. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page14of26 CTION Defendant SCEknowsthevalueofsubscribersalltoowell.Sowell,infact,thatit With eachnewuseraddedcomesawealthofinformation.Inorderto C OMPLAINT
36 Eachlinkingtoasocialmediaaccountprovides Tidal withan 35 Basedonitsownmath,theaddedvalueof 14 See alsoTristanLouis,How C ASE
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information). each uniqueTidaluser’s habitsthatcanthenbecapitalizedoninaddition totheirbasic these methodsofaccessing Tidalhasthepotentialtogenerateanadditional wealthofdatafor (identifying numerousdevices andoperatingsystemsthatTidalcanbeutilized through,eachof added.) begins collectingamassiveamountofanalyticsdata,userhabits,andbrowsinghistory. C 39 38 visited April18,2016). https://verify.sheerid.com/tidal-military/?vsid=93e65bdb-18ff-47d8-9adc-eac64ff89ebd (last visited April11,2016);TIDALMilitaryPlaninformationverificationportal , TIDAL, downloaded andsubscribedtotheserviceinorder togainaccessthealbum. As partofthe proclaiming thatTheLifeofPablowouldbeavailableexclusivelyonTidal,PlaintiffBaker-Rhett “represent thatyouhavethepermissionofaparentguardian”todoso. years ofage,whenyouvisit,browse,use,orsubmitpersonalinformation”toTidal, young as13yearsold.Forexample,itsTermsofUsestatethat“Ifyouarebetweenand17 valuable) profileofeachconsumer. location, gender,phonenumber,andbirthday—inordertodevelopamoreaccurate(and Tidal, thestreamingserviceseeksevenmoredata about eachofitssubscribers—includingtheir benefitted fromhavingtheirsharesofTidalincreaseinvalue. parties (suchasrecordlabels,artistsonitsplatform,andothermediacompanies). to aidtheminbettermonetizingtheirsiteaswellsharingwithorsellingthatinformationthird increasing theiruserbasemultipletimesover,Tidalisabletocreatevaluableusage information
LASS A See Install,TIDAL,http://tidal.com/us/download(lastvisited April 18,2016) See TidalTermsofUse,http://tidal.com/us/terms (last visitedApril18,2016).(Emphasis 48. 46. 51. 50. 47. 49. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page15of26 CTION Once aconsumercompletesthesignupprocessandstartsusingservice,Tidal After consumersprovidethismandatoryinformationinexchangeforaccessto Immediately afterviewingMr.West’sFebruary15,2016announcement Plaintiff Baker-RhettisafanofDefendantKanyeWest’smusic. Alarmingly, Tidalspecificallytargetsthe“personalinformation”ofminorsas As aresultoftheirmisrepresentations,eachDefendant,asstakeholderTidal, C OMPLAINT FACTS SPECIFICTOPLAINTIFFBAKER-RHETT
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C as follows: and (b)(3)onbehalfofhimselfaclass a Tidalexclusiveandbeforehewascharged a secondtime. service (forwhichhewascharged$9.99inMarch2016). the Tidalapp,providedhispersonalinformation,orpaidforasubscriptiontoTidal’sstreaming one inwhichhealreadypaysfor(e.g.,hispaidSpotifyaccount),wouldnothavedownloaded stream throughotherplatformsbesidesTidal,particularlythosethatofferthealbum forfreeor representations thatTheLifeofPablowouldonlyeverbeavailableonTidal. available. believing thatitwastheonlymusicplatformonwhichTheLifeofPabloalbumwouldeverbe Pablo albumthatsameday. trialperiodended. thefree platform after payment informationsoTidalcouldchargehimforasubscriptiontoitsmusic-streaming sign upprocess,PlaintiffBaker-RhettwasrequiredtoprovideTidalwithhispersonaland LASS A 57. 56. 55. 54. 53. 52. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page16of26 CTION California. of State the in reside who members Class All Subclass: California who and (3) 2016, 24 hoursaftersubscribing. 1, April from and track any streamed 2016 (2) 15, platform, streaming February Tidal between the to subscription their renewed Class: Class Definition:PlaintiffbringsthisactionpursuanttoFed.R.Civ.P.23(b)(2) Plaintiff cancelledhissubscriptionafterfindingoutthat Had PlaintiffBaker-RhettknownthatMr.West’salbumwouldbeavailableto This wasaresultofviewingTidal’sandMr.West’sannouncements Plaintiff Baker-RhettsubscribedtoTidalspecificallybecause he wasmisledinto After subscribingtoTidal,PlaintiffBaker-RhettbeganstreamTheLifeof C OMPLAINT l pros n h Uie Sae wo 1 sbcie or subscribed (1) who States United the in persons All
CLASS ALLEGATIONS album during the first the during album Pablo of Life The andsubclassofsimilarlysituatedindividuals,defined 16 The LifeofPablowasnot C ASE
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C questions fortheClassincludebutarenotlimitedtofollowing: predominate overanyquestionsthatmayaffectindividualmembersoftheClass.Common common totheclaimsofPlaintiffandothermembersClass,thosequestions Defendants’ records. likely consistsofmillionsindividuals.Classmemberscanbeeasilyidentifiedthrough available toPlaintiffatthistime,butindividualjoinderincaseisimpracticable.TheClass excluded persons. Defendants’ counsel;and(6)thelegalrepresentatives,successors,assignsof anysuch been finallyadjudicatedonthemerits orotherwisereleased;(5)Plaintiff’scounseland file atimelyrequestforexclusionfromtheClass;(4)personswhoseclaimsin this matterhave and itscurrentorformeremployees,officersdirectors;(3)personswhoproperlyexecute predecessors, andanyentityinwhichtheDefendants ortheirparents haveacontrollinginterest members oftheirfamilies;(2)Defendants,Defendants’subsidiaries,parents,successors, “Class,” unlessotherwiseindicated):(1)anyJudgeorMagistratepresidingoverthisactionand The followingpeopleareexcludedfromtheClassandCaliforniaSubclass(collectively LASS A 59. 58. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page17of26 CTION e) d) c) b) a) Commonality andPredominance:Therearemanyquestionsoflawfact Numerosity: Theexactnumberofmembers oftheClassisunknownandnot C OMPLAINT whether Defendantshave beenunjustlyenrichedasaresultoftheconduct inducement; and whether Defendants’conductdescribedhereinconstitutes fraudulent Competition Law(Cal.Bus.&Prof.Code§§17200, etseq.); whether Defendants’conductdescribedhereinviolates California’sUnfair False AdvertisingLaw(Cal.Bus.&Prof.Code§ 17500); whether Defendants’conductdescribedhereinviolates California’s into subscribingtotheTidalstreamingservice; whether Defendants’representationsweredesignedtomisleadconsumers
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C presented herein.Bycontrast, aclassactionpresentsfarfewermanagement difficultiesand all partiesandtheCourt and requireduplicativeconsiderationofthelegal andfactualissues preferable toaclassactionbecauseindividuallitigation wouldincreasethe delay andexpenseto Even ifmembersoftheClassthemselvescouldsustain suchindividuallitigation,itwouldnotbe impossible, fortheindividualmembersofClass toobtaineffectiverelieffromDefendants. necessitated byDefendants’actions.Absentaclass action,itwouldbedifficult,ifnot relatively smallcomparedtotheburdenandexpense ofindividualprosecutionthelitigation controversy. TheinjuriessufferedbytheindividualmembersofClassarelikelytohavebeen are superiortoallotheravailablemethodsforthefairandefficientadjudicationofthis to Plaintiff. on Defendants’conductwithrespecttotheClassasawhole,notfacts orlaw applicableonly and affectthemembersofClassuniformlyPlaintiff’schallengethesepolicieshinges appropriate withrespecttotheClassasawhole.Defendants’policieschallengedhereinapply standards ofconducttowardthemembersClass,andmakingfinalinjunctiverelief to theClass,therebyrequiringCourt’simpositionofuniformreliefensurecompatible for certificationbecauseDefendants haveactedorrefusedtoactongroundsgenerallyapplicable and DefendanthasnodefensesuniquetoPlaintiff. complex litigationandclassactions.PlaintiffhasnointerestsantagonistictothoseoftheClass, protect theinterestsofClass,andhasretainedcounselcompetentexperiencedin conduct duringtransactionswithPlaintiffandtheClass. Class. PlaintiffandtheClasssustaineddamagesasaresultofDefendants’ uniformwrongful LASS A 60. 63. 62. 61. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page18of26 CTION Typicality: Plaintiff’sclaimsaretypicaloftheothermembers Superiority: Thiscaseisappropriateforcertificationbecauseclassproceedings Policies GenerallyApplicabletotheClass:Thisclassactionisalsoappropriate Adequate Representation:Plaintiffwillfairlyandadequatelyrepresent C OMPLAINT described herein.
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Life ofPablowouldonlybeavailable viatheTidalmusic-streamingplatform. their advertisementsand statementscausedreasonableconsumerstomistakenly believethat The LifeofPabloalbumwereuntrue,misleading,andlikelytodeceive thepublicinasmuchas Tidal onlyexclusive(nordidDefendantsintend it tobe). would onlybeavailableviatheTidalmusic-streaming platform,TheLifeofPablowasnota members tosubscribeTidal’sstreamingplatform. exclusive onTidal. statements madebyMr.West,orotherwiseindicatethatthealbumwould not beapermanent via Tidal’sTwitterfeedandotherrepresentationsmadebyTidal.SCEthenfailedtocorrectany also representedtoconsumersthatTidalwouldbetheexclusivemethodoflisteningalbum consumers theworldover—inparticular,ofhismusic.Moreover,SCEandMr.West made thisrepresentationknowingthatvariousmediaoutletswouldensureitwasbroadcastto public atlargethatthealbumwouldonlybeavailablethroughTidalplatform.Mr.West them thatTheLifeofPabloalbumwouldbeexclusivetoitsmusic-streamingservice. United States,includinginCalifornia,thatencouragedthemtosubscribeTidalbypromising C decisions willbeensured. by asingleCourt.Economiesoftime,effort,andexpensewillbefostered,uniformity provides thebenefitsofsingleadjudication, economy ofscale,andcomprehensivesupervision LASS A 69. 68. 67. 66. 65. 64. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page19of26 CTION Defendants’ advertisingandmarketingstatements regarding theexclusivityof Despite theirpublicadvertisingandmarketingstatements that TheLifeofPablo Defendants didsowiththeintenttoinducePlaintiff andtheCaliforniaSubclass Specifically, Mr.West—viahisTwitteraccount—representedtofansandthe Defendants engagedinadvertisingandmarketingtoconsumersthroughoutthe Plaintiff incorporatestheforegoingallegationsasiffullysetforthherein. C OMPLAINT (On BehalfofPlaintiffandtheCaliforniaSubclass) Violation ofCalifornia’s FalseAdvertisingLawViolation
Cal. Bus.&Prof.Code§17500 FIRST CAUSEOFACTION 19 C ASE The
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C (2) awardingreasonablecostsandattorneys’feespursuanttoCal.CodeCiv.Proc.§1021.5. California Subclassmembersallmoniesacquiredbymeansoffalseadvertising(restitution); and, and theCaliforniaSubclasshavesufferedinjuryinfactlostmoniesto Defendants. statements, PlaintiffandtheCaliforniaSubclassmemberswouldnothavesubscribedtoTidal. in decidingtosubscribetheTidalmusic-streamingplatform. Code §17500. that theirstatementswerefalseandmisleadingand,therefore,inviolationofCal.Bus.&Prof. exclusivity ofTheLifePabloalbumallegedherein,Defendantskneworshouldhaveknown and theCaliforniaSubclass) intosubscribingtotheirmusic-streamingplatform when,infact, music-streaming platform andusingthemisrepresentationstoinduceconsumers (likePlaintiff other things,misrepresentingthatTheLifeofPablo albumwouldonlybeavailableviatheTidal competition. A businesspracticeneedonlymeetoneofthese three criteriatobeconsideredunfair markets forgoodsandservices. et seq.,protectsbothconsumersandcompetitorsbypromotingfaircompetitionincommercial LASS A 70. 74. 73. 72. 71. 78. 77. 76. 75. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page20of26 CTION Accordingly, inmakinganddisseminatingthestatementsregarding Accordingly, Plaintiffseeksanorder(1)requiringDefendantstorestorethe advertising,PlaintiffThus, asadirectandproximateresultofDefendants’false But forDefendants’falseandmisleadingadvertisementsmarketing Plaintiff andmembersoftheCaliforniaSubclassreliedonDefendants’statements As describedherein,Defendantsengagedinunfair businesspracticesby,among The UCLprohibitsanyunfair,unlawful,orfraudulent businessactsorpractices. California’s UnfairCompetitionLaw(“UCL”),Cal.Bus.&Prof.Code§§17200, Plaintiff incorporatestheforegoingallegationsasiffullysetforthherein. C OMPLAINT (On BehalfofPlaintiffandtheCaliforniaSubclass) Violation ofCalifornia’sUnfairCompetitionLaw Violation
Cal. Bus.&Prof.Code§§17200,etseq. SECOND CAUSEOFACTION 20
C ASE
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C injurious toconsumers.Defendants violatedtheUCL’s“unfair”prongby causingsubstantial public policyorisotherwise immoral,unethical,oppressive,unscrupulous, orsubstantially subscribe toTidal. information, socialmediaandcredit cardinformationtoTidal,orotherwise Pablo wasnotaTidalonlyexclusive,theywouldhave beenwillingtoprovidetheirpersonal such, Defendants’promiseswerematerial. to Tidalbasedonthoserepresentationsthatitwouldbetheexclusivesourceofalbum. the media—regardingTheLifeofPabloastrue,andadirectproximateresult,subscribed reasonably viewedthestatementsmadebyMr.WestandSCEviaTwitter—and rebroadcastby Defendants intendittobe). the Tidalmusic-streamingplatform,TheLifeofPablowasnotaonlyexclusive(nordid California Subclass,andtheworldatlarge—thatTheLifeofPablowouldonlybeavailablevia representations—and thegeneralconsensusamongPlaintiffBaker-Rhett, membersofthe because ofthesepromisesthatTheLifePabloalbumwouldonlybeavailableviatheTidal. information, andcreditcardinformationtoTidal. Plaintiff andtheCaliforniaSubclasswouldprovidetheirpersonalinformation,socialmedia subscribe tothestreamingservice.Specifically,itwasamaterialtermindeterminingwhether directly affectedPlaintiffBaker-Rhett’sandtheCaliforniaSubclassmembers’choicesto was amaterialterminPlaintiffandtheCaliforniaSubclass’stransactionswithTidalbecauseit The LifeofPablowasnotaTidalonlyexclusive(nordidDefendantsintendittobe). LASS A 84. 83. 82. 81. 80. 79. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page21of26 CTION Under theUCL,an“unfair”businesspracticeis one thatoffendsanestablished Accordingly, hadPlaintiffandtheCaliforniaSubclass knownthatTheLifeof Plaintiff Baker-Rhett,theCaliforniaSubclass,andpublicgenerally, Unfortunately, Defendants’promiseswerefalse.ContrarytoMr.WestandSCE’s Plaintiff andtheCaliforniaSubclasschosetosubscribeTidalspecifically The exclusiveavailabilityof C OMPLAINT
The LifeofPabloontheTidalstreamingplatform 21 C ASE As
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C and attorneys’feespursuanttoCal.CodeCiv.Proc.§1021.5. monies acquiredbymeansoffalseadvertising(restitution);and,(2)awardingreasonablecosts seeks anOrderrequiringDefendants:(1)torestoretheCaliforniaSubclassmembersall False AdvertisingLaw. First CauseofActionabove,theirconductdescribedaboveconstitutesaviolationCalifornia’s state, orlocallaw.DefendantsviolatedtheUCL’s“unlawful”prongbecause,asdescribedin Defendants’ representationsoravoidedtheharmtheycaused. Plaintiff andtheCaliforniaSubclasscouldnotreasonablyhaveknownoffalsity between DefendantsandconsumersregardingtheactualexclusivityofTheLifePabloalbum, and couldnothavereasonablybeenknownbyconsumers.Given the informationasymmetry unfair conductarenotoutweighedbyanycountervailingbenefitstoconsumersorcompetition, injury toconsumersthroughtheconductdescribedabove.Theinjuriescausedby Defendants’ Mr. Westmadethisrepresentation knowingthatvariousmediaoutletswould ensureitwa fans andthepublicatlarge thatthealbumwouldonlybeavailablethrough theTidalplatform. Pablo throughtheservice.Inparticular,Mr.West—via hisTwitteraccount—representedto Baker-Rhett andthemembersofClassintosubscribing toTidalandstreaming be available. about, and/oromittedfactsaboutthedifferentmediums throughwhichTheLifeofPablowould service, Mr.WestandSCEaffirmativelyintentionallymisrepresented,madefalsestatements LASS A 86. 85. 89. 88. 87. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page22of26 CTION Pursuant toCal.Bus.&Prof.Code§§17203and/or17204,PlaintiffBaker-Rhett An “unlawful”businesspracticeundertheUCLisonethatviolatesafederal, By andthroughthesemethods,Mr.WestSCE fraudulentlyinducedPlaintiff To inducePlaintiffandtheClassintosubscribingtoTidal’smusicstreaming Plaintiff incorporatestheforegoingallegations asiffullysetforthherein. C OMPLAINT
(On BehalfofPlaintiffandtheClass) THIRD CAUSEOFACTION Fraudulent Inducement 22
The Lifeof C ASE s
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C would nothavesubmitted theirpersonalcontactinformation,creditcard information, other this casetheexclusivityofTheLifePablo),areactionableadvertisementsandrepresentations. statements madeonTwitterregardingconcreteand materialaspectsofaproductorservice,(in an authorizedagentofTidalandcapablemaking representations onitsbehalf.Moreover, true, andsubscribedtoTidalbasedonthoserepresentations. Mr.West,asanownerofTidal,is Mr. WestandSCEviaTwitter—andrebroadcast bythemedia—regardingTheLifeofPabloas they subscribedtoTidal’sstreamingservices. Plaintiff Baker-RhettandtheClassmembersdidinfactrelyuponthesemisrepresentationswhen the purposeofinducingPlaintiffBaker-RhettandClassmembersintosigningupforTidal. credit cardinformationtoTidal. Plaintiff andtheClasswouldprovidetheirpersonalinformation,socialmedia to subscribethestreamingservice.Specifically,itwasamaterialtermindeterminingwhether with TidalbecausetheydirectlyaffectedPlaintiffBaker-Rhett andtheClassmembers’choices exclusively availablethroughTidal were materialtermsinPlaintiff’s andtheClass’stransactions that providedfreeaccesstothealbum. Pablo madeavailablethroughTidal’scompetitors,butitwasplatforms permanently exclusivethroughtheTidalstreamingplatform.Moreover,notonlywas indicate thatthealbumwouldnotbeapermanentexclusiveonTidal. made byTidal.SCEthenfailedtocorrectanystatementsMr. West,orotherwise exclusive methodoflisteningtothealbumviaTidal’sTwitterfeedandotherrepresentations broadcast totheworld.Moreover,SCEandMr.WestalsorepresentedthatTidalwouldbe LASS A 94. 93. 92. 91. 90. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page23of26 CTION Plaintiff andmembersof theClass—includingminorsasyoung13years old— Plaintiff Baker-RhettandtheClassjustifiablyreliedonstatements madeby Mr. WestandSCEintentionallymadetheaforementionedmisrepresentationsfor The representationsmadebyMr.WestandSCEabout Mr. WestandSCE’srepresentationswereinfactfalse. C OMPLAINT
23 The LifeofPablobeing The LifeofPablowasnot The Lifeof C ASE
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C Defendants toceaseanymonetizationeffortsrelyingonClassmembers’information. aspects ofalloutstandingfreetrialscreatedduringtheclassperiod, andanorderdirecting acquired byDefendantsbedestroyed,anorderdirectingtocancelthenegativeoption Further, Plaintiffseeksanorderrequiringallpersonalandcreditcardinformationwrongly punitive damagesagainstMr.WestandSCEinanamounttodetersuchconductthefuture. conscious disregardforPlaintiffBaker-RhettandtheClass’srights,theyshouldbeawarded finds thatMr.WestandSCE’sconductmisrepresentationsweremadewithmalicein and SCEtopayactualcompensatorydamages.PlaintifffurtherrequeststhatiftheCourt would beavailablethroughplatformsotherthanTidal. personal details,oragreedtoanegativeoptiontrialhadtheyknownthatMr.West’salbum streaming service,eachDefendant benefittedbyhavingthevalueoftheir stakeinthecompany as young13yearsold) materiallyincreasedthevalueofTidal.Asowners oftheTidal massive influxofnewsubscribersanddataabout membersoftheClass(whichincludesminors through Tidal. pretenses becauseofthemisrepresentationthat account details,whichPlaintiffBaker-Rhettand the Classmemberssubmittedunderfalse and theClassmembers’money,personalinformation, creditcardinformation, and socialmedia retain suchbenefits.Specifically,DefendantshavereceivedandretainedPlaintiffBaker-Rhett Rhett andtheClassthroughafraudulentschemethatwouldrenderitunjusttoallowthem excluding paragraphs60-91. LASS A 95. 98. 97. 96. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page24of26 CTION In lightoftheforegoing,PlaintiffBaker-RhettseeksanorderrequiringMr.West Defendants benefittedthroughthefraudulentlyinduced subscriptionsbecausethe Defendants haveknowinglyreceivedandretainedbenefitsfromPlaintiffBaker- Plaintiff incorporatestheforegoingallegationsasiffullysetforthherein, C OMPLAINT
(OnBehalfofPlaintiffandtheClass) FOURTH CAUSEOFACTION In theAlternativetoCounts1-3 Unjust Enrichment 24 The LifeofPablowouldbeavailableexclusively
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amount tobedetermined attrial; the Classinanamounttobedeterminedattrial; unjustly enrichedasaresult; Law (Cal.Bus.&Prof.Code§§17200,etseq.),fraudulentinducement,andthattheywere California’s FalseAdvertisingLaw(Cal.Bus.& Prof.Code§17500)andUnfairCompetition Class Counsel; appointing PlaintiffBaker-RhettasrepresentativeoftheClass,andhiscounsel respectfully requeststhattheCourtenteranorder: cease anymonetizationeffortsrelyingonClassmembers’information. all outstandingfreetrialscreatedduringtheclassperiod, andanorderdirectingDefendantsto Defendants bedestroyed,anorderdirectingtocancelthenegativeoptionaspectsof Plaintiff seeksanorderrequiringallpersonalandcreditcardinformationwronglyacquiredby restitution anddisgorgementofallmoniesunjustlyreceivedretainedbyDefendant.Further, unjustly receivedasaresultofitswrongfulconductdescribedherein. Plaintiff Baker-RhettandtheClass,orincreasedvalueoftheirequityinTidalthatthey permitted toretainthemoney,creditcardinformation,andpersonalinformationbelonging C increased asadirectresultofthemisrepresentations, aswellotherdirectmonetarybenefits. LASS A 100. 99. D. C. B. A. WHEREFORE, PlaintiffBaker-Rhett,individuallyandonbehalfoftheClass, 101. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page25of26 CTION Under principlesofequityandgoodconscience,Defendantsshouldnotbe Defendants appreciateandhaveknowledgeofsuchbenefits. Awarding appropriaterestitution toPlaintiff Baker-RhettandtheClassin an Awarding actualdamages andpunitivedamageswhere applicable,toPlaintiffand Declaring thatDefendants’actions,assetoutabove,constituteviolationsof Certifying thiscaseasaclassactiononbehalfoftheClassdefinedabove, Accordingly, PlaintiffBaker-Rhett,individuallyandonbehalfoftheClass,seeks C OMPLAINT
PRAYER FORRELIEF 25 C ASE
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C OneofPlaintiff’sAttorneys E [email protected] Jay Edelson* Dated: April18,2016 allowable; and wrongful andunlawfulactsdescribedherein; interests oftheClass,including,interalia,anorderprohibitingDefendantsfromengagingin trials createdduringtheclassperiod; to PlaintiffandmembersoftheClass; data; pro hacvicetobefiled. *Motion foradmission Fax Tel: 312.589.6370 Chicago, Illinois60654 350 NorthLaSalleStreet,13thFloor DELSON LASS : 312.589.6378 A E. Plaintiff demandsatrialbyjuryforallissuessotriable. K. J. I. H. G. F. Case 4:16-cv-02013-KAWDocument1Filed04/18/16Page26of CTION PC Requiring Defendantstoceaseallmonetizationeffortsthat rely ontheirpersonal Awarding suchfurtherandotherrelieftheCourtdeemsreasonablejust. Awarding PlaintiffandtheClasspre-post-judgmentinterest,toextent Awarding reasonablelitigationexpensesandattorneys’fees; Awarding injunctiveandotherequitablereliefasisnecessarytoprotectthe Requiring Defendantstocancelthenegativeoptionaspectsofalloutstandingfree Requiring thedestructionofallpersonaldatainDefendantspossessionbelonging C OMPLAINT
JURY TRIAL y s odM oa By:/s/ToddM.Logan behalf ofallotherssimilarlysituated, JUSTIN BAKER-RHETT,individuallyandon Respectfully submitted, 26 E [email protected] Todd M.Logan(SBN305912) Counsel forPlaintiffand thePutativeClass Fax: 415.373.9435 Tel: 415.212.9300 San Francisco,California94107 329 BryantStreet,Suite2C DELSON PC C ASE
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