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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: San Francisco,California94107 329 BryantStreet,Suite2C 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 415.212.9300 A Plaintiff JustinBaker-RhettbringsthisClassAction ComplaintandDemandforJury CTION Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 1 of 26 PC PC
C OMPLAINT FOR THENORTHERNDISTRICTOFCALIFORNIA Defendants 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, ofCal.Bus.&Prof. Violations Code §17500; ofCal.Bus.&Prof. Violations
et seq .;
C ASE N O .
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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, 2016). subscriber-numbers-surge- Digital MusicNews(Feb. 24,2016),http://www.digitalmusicnews.com/2016/02/24/tidal- exclusivity-have-been-gr-234694 (lastvisitedApril 18,2016). exaggerated music-service-1201462769/ (lastvisitedApril18, 2016). Event get itonTidal.” the “albumw[ould]neverbeonApple.Anditwillforsale…Youcanonly album “ superstar KanyeWest,whoownsaportionofTidal,promisedtoreleasehislonganticipatednew publicity. experts predicteditsimminentdemiseabsentasignificantswellinusersandnewroundof
LASS (March30,2015),http://variety.com/2015/digital/news/jay-z-launches-tidal-streaming- A 5. 1. 2. See See See 4. 3. The LifeofPablo CTION 1
Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 2 of 26 dedicatedsubscribersdidnotfollow. Charlotte Hassan, Danette Chavez, Todd Spangler , A.V.Club(Apr.1,2016),http://www.avclub.com/article/reports- Mr. West’sunequivocaldeclarationofTidal’sexclusiveaccesstohisalbumhada Though Jay-Z’sstar-studded2015“re-launch”garneredTidalsignificantmedia Tidal isamusicstreamingservicethatmogulShawn“JayZ”Carter Fortunately forTidal,helparrivedjustinthenickoftime.Internationalhip-hop By early2016,Tidalwasquietly C 2
OMPLAINT The LifeofPablo ” exclusivelyonTidal.Specifically, Mr.WestpromisedonTwitterthat , JayZLaunchesTidalStreaming-MusicService atStar-Studded after
Reports ofTheLifePablo’sTidalexclusivityhave beengreatly KanyeMayHaveSingle-Handedly DoubledTidal’sSubscribers… -exclusively-releasing-kanyes-album/ (lastvisitedApril18, NATURE OFTHEACTION wasstreamed250milliontimesinthefirst10days. Each 2 teete ring onthebrinkofcollapse.Manyindustry life -pablos-tidal- 3
C ASE
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C 4 as much$84million new usersacquiredasaresultofitspurportedly exclusive accessto 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 after access to financial dataofitsmorethan enormous benefituponTidal: minors asyoung13yearsold. identifiable information. that consumer’semailaddress,socialmediaaccount information,andotherpersonally For eachnewTidalsubscriberwhosignedupasaresultofMr.West’sclaims, Tidalobtained trial, submittedacreditcardtobechargedoncethetrialended. new subscriberthatsignedup,includingthosewhoupfora“free”( great cost.Consumerswereuniformlytrickedinto handingovertheirprivatedataandcreditcard
LASS A 6. 10. 9. 8. 7. See infra 11. CTION
Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 3 of 26 The LifeofPablo The LifeofPablo’s
Using publicallyavailableacquisitionsasacomparable metric,the twomillion By thetimeMr.Westchangedcourseandbroadlyreleased Contrary toMr.West’srepresentations,however,thepurportedly“exclusive” Mr. West’spromiseofexclusiveaccessto Mr. West’spromiseofexclusivityalsohadagraveimpactonconsumerprivacy. Unfortunately for millions of American consumers, Tidal’s windfall cameata Unfortunately formillionsofAmericanconsumers, Tidal’swindfall C , ¶42. OMPLAINT to Alarmingly, Tidalspecificallytargetedthe“personalinformation”of Tidal. thatTidalsubscriberswerepromisedwasshortlived.Amonthanda
initialrelease,Mr.Westmadethealbumavailable through Tidal’s a two tripled 4
millionnewsubscriber subscriberbase,repletewithaccesstothepersonaland 3 s. The LifeofPablo
The LifeofPablo The LifeofPablo i.e. conferredan , negativeoption) areworth C ASE , the
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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- "Other People's Money" forBusinessProjects to useotherpeople'smoney place thatsomanyartistendup… 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 12. 16. 15. 14. 13. CTION Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 4 of 26
Defendant KanyeWestisanaturalpersonandcitizenoftheStateCalifornia. Defendant S.CarterEnterprises,LLC,isalimitedliability company existing Plaintiff JustinBaker-RhettisanaturalpersonandcitizenoftheState In reality,neitherMr.WestnorSCEeverintended To obtainredressfromthesedeceptivemarketingpractices,PlaintiffBaker-Rhett, C OMPLAINT
.” See KanyeWestExplains He's"Personally Rich" ButNeeds Also for anyone that has money they know thefirstruleis Also foranyonethathasmoneytheyknow PARTIES west (Feb. 15,2016)(emphasis added), 4
-explains-he-s-personally-rich-but-needs- 5
The LifeofPablo torun C all ASE
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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
LASS A 23. 17. 22. 21. 20. 19. 18. See ProjectPantherBidco LtdlaunchesarecommendedcashofferofSEK 1.05pershare CTION Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 5 of 26
After acquiringAspiro,JayZwastednotimeannouncing hisplansforTidalto Soon thereafter,ProjectPantherBidCoLtd.,aholding companycreatedby Tidal wasoriginallylaunchedin2014asahighfidelitymusic-streaming platform Pursuant toCivilLocalRule3-2(d),thiscaseshouldbeassignedtheSan Venue isproperinthisDistrictunder28U.S.C.§1391(b)becauseDefendants This CourthaspersonaljurisdictionoverDefendantsbecausetheytransact This Courthasjurisdictionoverthisactionpursuantto28 U.S.C.§1332(d)(2), C OMPLAINT
INTRADISTRICT ASSIGNMENT JURISDICTION ANDVENUE , http://www.aspiro.com/wp/wp-content/uploads/2015/01/Offer- FACTUAL BACKGROUND 5 6
C ASE
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(identifying morethan21.9 millionfollowersofMr.WestonTwitter). twitter Blue subscriber baseandtheirownalbumsales. 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 Who-Owns-TIDAL- z-tidal-launch-artist-stakeholders (lastvisitedApril 18,2016). Stakeholders Chassagne, Beyonce,CalvinHarris,ChrisMartin,DaftPunk,deadmau5,JackWhite,Jason service. Itsinitialstakeholdersincludedworld-renowned artistsAliciaKeys,WinButler,Regine West. Aldean, J.Cole,Madonna,NickiMinaj,Rihanna,Usher,JayZhimself,andDefendantMr.
LASS , SPIN(March30,2015), 8 -kanye-
A See See
24. 25. See See WhoOwnsTIDAL See CTION 9 Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 6 of 26
JamesGrebey, AndrewFlanaganandHampp, AndrewFlanagan, Kanye West , billboard(March30,2015),http://www.billboard.com/articles/news/6509498/jay- west Each owner/artistwasofferedathreepercentstakeinthecompanyexchange The foundingstakeholdersalsocommittedtheirsocialmediapresenceto C OMPLAINT -arcade-fire-third-man/ (last visitedApril18,2016). (lastvisitedApril18,2016). , Twitter Jay Z’sNewTidalStreamingServiceHasTurned Everybody’sAvatar
, billboard(March30,2015)
, TIDAL, It’s Official:JayZ’sHistoricTidalLaunchesWith16Artists http://www.spin.com/2015/03/jay-z-tidal-streaming-launch-blue-
7 https://twitter.com/kanyewest (lastvisited April 18,2016) Tidalwasalsotoutedasthefirst“artistowned”streaming https://support.tidal.com/hc/en-us/articles/203055651- See 11 ) Twittermass-marketinghasbeenperpetually Figure1. 6 It’s Official:JayZ’sHistoricTidalLaunches 10 (KanyeWest C ASE
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Exclusive Releaseof traditional newssitesin February 2015alone). using keywordsassociated withMr.Westinblogs,socialmediaplatforms, Twitter,and (discussing theuseofasocialmediamonitoring tool toidentifyovertenmillionconversations at February onsocialmedia promotional processofhispersonalcelebrity“brand”). twitter http://www.theguardian.com/music/2016/feb/19/social-media-damaging-music-industry-pr- music industry cover-theres-a-good-reason-he- http://www.bustle.com/articles/76739-kanye- Cover &There’sAGoodReasonHeWasChosenForTheHonor visited April18,2016);KadeenGriffiths, April 18,2016); http://www.rollingstone.com/music/lists/500-greatest-albums-of- 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- media andpublicatlarge. Twitter feedisregularlyatthecenterofamaelstromdiscussionandscrutinybyboth tweets thatareoftenwidelyreportedon by thepopularmedia. with nearly C 19 18 17 16 15 twice. honor ofhavingbeenselectedasoneTimeMagazine’smostinfluentialpeopleintheworld, three albumsincludedonthe2012 innovations totherapgenre.Mr.Westisamusicalparagon,withtwenty-oneGrammyawards, of Pablo
LASS -kanye- 16 -kanye-west (lastvisitedApril18,2016)(noting Mr.West’suseofTwitteraspartthe A See See #YeezySeasonbythenumbers:AlookatKanye West’sbeautifuldarktwisted See See 500GreatestAlbumsofAllTime See 30. 28. 29.
, onTidal. CTION Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 8 of 26 wests
Kanye West Harriet Gibsone, Jamieson Cox, 22 million , theguardian(Feb.19,2016), -beautiful-dark- Despite Mr.West’swildsuccessandpopularity,hispersonal Defendant Westisknowntheworldoverforhisartisticcontributionsand Due toMr.West’sunbridledsuccessandoutspokensocialmediapresence, C Kanye We OMPLAINT 15
The LifeofPablo Twitterfollowers(althoughhehimselfonlyfollowsoneperson)and , Twitter,https://twitter.com/kanyewest (lastvisited April 18,2016). , cramer-krasselt,http://c-k.com/yeezyseason-by-the-numbers-a-look- 18 Kanye West’snewalbumSwishiscomingoutonFebruary11th st
Asaresult,Mr.Westhasdevelopedrobustanddevoutfanbase, , TheGrammys,http://www.grammy.com/artist/kanye-west(last No suchthingasbadPR:Issocialmediasaving ordamagingthe twisted was Rolling Stone -chosen (lastvisitedApril18,2016). -february-on-social-media/ (lastvisitedApril18, 2016)
Kanye WestMakesTIMEMagazine’sMostInfluential , RollingStone(May31,2012),
west 8 “500 GreatestAlbumsofAllTime”list,andthe -makes- time -magazines-most-influential- all , Bustle(April16,2015), - time -20120531 (lastvisited west - swish claim as -new- C the ASE
17 , The his
N 19 O
.
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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- Much IsAUserWorth? models needtoworkoutaboutthesamejustify thevaluations.”) $80Bn). Otherpopularsocialappsarevaluedaround $20to$50peruser.Themonetization = $1B).Facebookisvaluedatabout$100peruser or$80billion($100/userX800Musers= 2016) (FacebookacquiredInstagramforabout$30peruser,or$1billion.($30/userX33Musers http://fortune.com/2012/04/10/why-instagram- 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 subscribersandtheirinformationgainedthrough
C 37 36 35 34 user. can beappliedtoFacebook’s2012purchaseofInstagramfor$1billion,oraround$30per they attend(orpreviouslyattended),oreventheircurrentmilitarystatusandbranchofservice. “plans,” consumersmaybepromptedtoprovideTidalwithinformation regardingtheschool even widerarrayofuserdataandinformation.Additionally,inordertosecurecertainpackage Thesignupprocessalsoincludes a LASS 34 UsingthepriceperusermetricsappliedtoWhatsAppandInstagram,inflationof A See TIDALStudentPlan informationverificationportal See See WhyInstagramisworth$1BtoFacebook 44. 45. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 14 of 26 CTION
Kylie Noble, Defendant SCEknowsthevalueofsubscribersalltoowell.Sowell,infact,thatit With eachnewuseraddedcomesawealthofinformation.Inorderto C OMPLAINT JayZ‘preparingtosue’formerTidalowners (Aug. 31,2013),
36 Eachlinkingtoasocialmediaaccountprovides Tidal withan pre-checked 35 Basedonitsownmath,theaddedvalueof is 14 -worth-1b- (April 10,2012), The LifeofPablo boxthatstates,“Signup fortheTIDAL to -facebook/ (lastvisitedApril18, , TIDAL, is -a-user-worth/#febe46592a9b See also (Mar.31,2016), falserepresentations TristanLouis, C ASE How
N 37 O
.
17 16 15 14 13 12 11 10 28 27 26 25 24 23 22 21 20 19 18 9 8 7 6 5 4 3 2 1
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); downloaded andsubscribedtotheserviceinorder togainaccessthealbum. As partofthe proclaiming that “represent thatyouhavethepermissionofaparentguardian”todoso. years ofage,whenyouvisit,browse,use, 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 See TidalTermsofUse 48. 47. 46. 51. 50. 49. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 15 of 26 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 The LifeofPablo , TIDAL,http://tidal.com/us/download(lastvisited April 18,2016) FACTS SPECIFICTOPLAINTIFFBAKER-RHETT TIDAL MilitaryPlaninformationverificationportal
, http://tidal.com/us/term wouldbeavailableexclusivelyonTidal,PlaintiffBaker-Rhett or submitpersonalinformation 15 s (last visitedApril18,2016).(Emphasis 38 ” toTidal,you
, TIDAL, 39 C By ASE
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C as follows: and (b)(3)onbehalfofhimselfac a Tidalexclusiveandbeforehewascharged a secondtime. service (forwhichhewascharged$9.99inMarch2016). the Tidalapp,providedhispersonalinformation,orpaidforasubscriptiontoTidal’sstreaming one inwhichhealreadypaysfor( stream throughotherplatformsbesidesTidal,particularlythosethatofferthealbum forfreeor representations that available. believing thatitwastheonlymusicplatformonwhich Pablo trialperiodended. thefree platform after payment informationsoTidalcouldchargehimforasubscriptiontoitsmusic-streaming sign upprocess,PlaintiffBaker-RhettwasrequiredtoprovideTidalwithhispersonaland LASS albumthatsameday. A 52. 57. 56. 55. 54. 53. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 16 of 26 CTION
California. 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 Plaintiff cancelledhissubscriptionafterfindingoutthat Had PlaintiffBaker-RhettknownthatMr.West’salbumwouldbeavailableto This wasaresultofviewingTidal’sandMr.West’sannouncements Plaintiff Baker-RhettsubscribedtoTidalspecificallybecause he wasmisledinto After subscribingtoTidal,PlaintiffBaker-Rhettbeganstream C OMPLAINT The LifeofPablo : l pros n h Uie Sae wo 1 sbcie or subscribed (1) who States United the in persons All
:
Plaintiff bringsthisactionpursuanttoFed.R.Civ.P.23(b)(2) e.g. CLASS ALLEGATIONS : All Class members who reside in the State of State the in reside who members Class All : wouldonlyeverbeavailableonTidal. , hispaidSpotifyaccount),hewouldnothavedownloaded lass The Life of Pablo of Life The andsubclassofsimilarlysituatedindividuals,defined 16 The LifeofPablo album during the first the during album The LifeofPablo albumwouldeverbe The Lifeof C ASE was not
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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, and members oftheirfamilies;(2)Defendants,Defendants’subsidiaries,parents,successors, “Class,” unlessotherwiseindicated):(1)anyJudgeorMagistratepresidingoverthisactionand The followingpeopleareexcludedfromtheClassandCaliforniaSubclass(collectively LASS A 59. 58. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 17 of 26 CTION
e) d) c) b) a) Commonality andPredominance Numerosity C
OMPLAINT
an y entityinwhichtheDefendants ortheirparents haveacontrollinginterest whether Defendantshave beenunjustlyenrichedasaresultoftheconduct inducement; and whether Defendants’conductdescribedhereinconstitutes fraudulent Competition Law(Cal.Bus.&Prof.Code§§17200, whether Defendants’conductdescribedhereinviolates California’sUnfair False AdvertisingLaw(Cal.Bus.&Prof.Code§ 17500); whether Defendants’conductdescribedhereinviolates California’s into subscribingtotheTidalstreamingservice; whether Defendants’representationsweredesignedtomisleadconsumers
: Theexactnumberofmembers oftheClassisunknownandnot 17 : Therearemanyquestionsoflawandfact et seq .); C ASE
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C presented herein.Bycontrast, aclassactionpresentsfarfewermanagement difficultiesand all partiesandtheCourtrequireduplicativeconsideration ofthelegalandfactualissues 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 Defendant and affectthemembersofClassuniformlyPlaintiff’schallengethesepolicieshinges appropriate withrespecttotheClassasawhole.Defendants’policieschallengedhereinapply standards ofconducttowardthemembersClass,andmakingfinalinjunctiverelief to for certificationbecauseDefendants haveactedorrefusedtoactongroundsgenerallyapplicable and DefendanthasnodefensesuniquetoPlaintiff. complex litigationandclassactions.PlaintiffhasnointerestsantagonistictothoseoftheClass, protect theinterestsofClass,andhasretainedcounselcompetentexperiencedin conduct duringtransactionswithPlaintiffandtheClass. Class. PlaintiffandtheClasssustaineddamagesasaresultofDefendants’ uniformwrongful LASS theClass,therebyrequiringCourt’simpositionofuniformrelieftoensurecompatible A 61. 60. 63. 62. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 18 of 26 CTION
s’ Superiority Policies GenerallyApplicabletotheClass Adequate Representation Typicality conductwithrespecttotheClassasawhole,notonfacts orlaw applicableonly C OMPLAINT described herein : Plaintiff’sclaimsaretypicaloftheothermembers :
This caseisappropriateforcertificationbecauseclassproceedings .
: Plaintiffwillfairlyandadequatelyrepresent 18 : Thisclassactionisalsoappropriate C ASE
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Life ofPablo their advertisementsandstatementscausedreasonable consumerstomistakenlybelievethat The LifeofPablo Tidal onlyexclusive(nordidDefendantsintend it tobe). would onlybeavailableviatheTidalmusic-streaming platform, 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 that 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-KAW Document 1 Filed 04/18/16 Page 19 of 26 CTION The LifeofPablo
wouldonlybeavailable viatheTidalmusic-streamingplatform. Defendants’ advertisingandmarketingstatements regarding theexclusivityof Despite theirpublicadvertisingandmarketingstatements that Defendants didsowiththeintenttoinducePlaintiff andtheCaliforniaSubclass Specifically, Mr.West—viahisTwitteraccount—representedtofansandthe Defendants engagedinadvertisingandmarketingtoconsumersthroughoutthe Plaintiff incorporatestheforegoingallegationsasiffullysetforthherein. C OMPLAINT albumwereuntrue,misleading,andlikelytodeceive thepublicinasmuchas (On BehalfofPlaintiffandtheCaliforniaSubclass) Violation ofCalifornia’s FalseAdvertisingLawViolation
albumwouldbeexclusivetoitsmusic-streamingservice. Cal. Bus.&Prof.Code§17500 FIRST CAUSEOFACTION 19 The LifeofPablo The LifeofPablo wasnota 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 of and theCaliforniaSubclass) intosubscribingtotheirmusic-streamingplatform when,infact, music-streaming platform andusingthemisrepresentationstoinduceconsumers (likePlaintiff other things,misrepresentingthat competition. A businesspracticeneedonlymeetoneofthese three criteriatobeconsideredunfair markets forgoodsandservices. et seq LASS ., protectsbothconsumersandcompetitorsbypromotingfaircompetitionincommercial A 71. 70. 74. 73. 72. 78. 77. 76. 75. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 20 of 26 CTION
The LifeofPablo Accordingly, inmakinganddisseminatingthestatementsregarding Accordingly, Plaintiffseeksanorder(1)requiringDefendantstorestorethe advertising,PlaintiffThus, asadirectandproximateresultofDefendants’false But forDefendants’falseandmisleadingadvertisementsmarketing Plaintiff andmembersoftheCaliforniaSubclassreliedonDefendants’statements California’s UnfairCompetitionLaw(“UCL”),Cal.Bus.&Prof.Code§§17200, Plaintiff incorporatestheforegoingallegationsasiffullysetforthherein. As describedherein,Defendantsengagedinunfair businesspracticesby,among The UCLprohibitsanyunfair,unlawful,orfraudulent businessactsorpractices. C OMPLAINT (On BehalfofPlaintiffandtheCaliforniaSubclass) Violation ofCalifornia’sUnfairCompetitionLaw Violation
Cal. Bus.&Prof.Code§§17200, SECOND CAUSEOFACTION albumallegedherein,Defendantskneworshouldhaveknown The LifeofPablo 20
albumwouldonlybeavailableviatheTidal et seq . C ASE
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C injurious toconsumers.Defendants violatedtheUCL’s“unfair”prongby causingsubstantial public policyorisotherwiseimmoral,unethical, oppressive,unscrupulous,orsubstantially subscribe toTidal. information, socialmediaandcredit cardinformationtoTidal,orotherwise Pablo such, Defendants’promiseswerematerial. to Tidalbasedonthoserepresentationsthatitwouldbetheexclusivesourceofalbum. the med reasonably viewedthestatementsmadebyMr.WestandSCEviaTwitter—and rebroadcastby Defendants intendittobe). the Tidalmusic-streamingplatform, California Subclass,andtheworldatlarge—that representations—and thegeneralconsensusamongPlaintiffBaker-Rhett, membersofthe because ofthesepromisesthat information, andcreditcardinformationtoTidal. Plaintiff andtheCaliforniaSubclasswouldprovidetheirpersonalinformation,socialmedia subscribe tothestreamingservice.Specifically,itwasamaterialtermindeterminingwhether directly affectedPlaintiffBaker-Rhett’sandtheCaliforniaSubclassmembers’choicesto was amaterialterminPlaintiffandtheCaliforniaSubclass’stransactionswithTidalbecauseit The LifeofPablo LASS wasnotaTidalonlyexclusive,theywouldhave beenwillingtoprovidetheirpersonal A 79. 84. 83. 82. 81. 80. ia Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 21 of 26 CTION —regarding
Under theUCL,an“unfair”businesspracticeis one thatoffendsanestablished Accordingly, hadPlaintiffandtheCaliforniaSubclass knownthat Plaintiff Baker-Rhett,theCaliforniaSubclass,andpublicgenerally, Unfortunately, Defendants’promiseswerefalse.ContrarytoMr.WestandSCE’s Plaintiff andtheCaliforniaSubclasschosetosubscribeTidalspecifically The exclusiveavailabilityof C OMPLAINT wasnotaTidalonlyexclusive(nordidDefendantsintendittobe). The LifeofPablo
The LifeofPablo The LifeofPablo astrue,andadirectproximateresult,subscribed The LifeofPablo 21 albumwouldonlybeavailableviatheTidal. The LifeofPablo wasnotaTidalonlyexclusive(nordid ontheTidalstreamingplatform wouldonlybeavailablevia The Lifeof C ASE As
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C and attorneys’feespursuanttoCal.CodeCiv.Proc.§1021.5. monies acquiredbymeansoffalseadvertising(restitution);and,(2)awardingreasonablecosts seeks anOrderrequiringDefendants:(1)torestoretheCaliforniaSubclassmembers False AdvertisingLaw. First CauseofActionabove,theirconductdescribedaboveconstitutesaviolationCalifornia’s state, orlocallaw.DefendantsviolatedtheUCL’s“unlawful”prongbecause,asdescribedin Defendants’ representationsoravoidedtheharmtheycaused. Plaintiff andtheCaliforniaSubclasscouldnotreasonablyhaveknownoffalsity between Defendantsandconsumersregardingtheactualexclusivityof and couldnothavereasonablybeenknownbyconsumers.Given the informationasymmetry unfair conductarenotoutweighedbyanycountervailingbenefitstoconsumersorcompetition, injury toconsumersthroughtheconductdescribedabove.Theinjuriescausedby Defendants’ Mr. Westmadethisrepresentation knowingthatvariousmediaoutletswould ensureitwa fans andthepublicatlargethatalbumwould onlybeavailablethroughtheTidalplatform. Pablo Baker-Rhett andthemembersofClassintosubscribing toTidalandstreaming be available. about, and/oromittedfactsaboutthedifferentmediums throughwhich service, Mr.WestandSCEaffirmativelyintentionallymisrepresented,madefalsestatements LASS throughtheservice.Inparticular,Mr.West—via hisTwitteraccount—representedto A 86. 85. 89. 88. 87. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 22 of 26 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 LifeofPablo The LifeofPablo The Lifeof all C album, would ASE s
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C would nothavesubmitted theirpersonalcontactinformation,creditcard information, other this casetheexclusivityof statements madeonTwitterregardingconcreteand materialaspectsofaproductorservice,(in an authorizedagentofTidalandcapablemaking representations onitsbehalf.Moreover, true, andsubscribedtoTidalbasedonthoserepresentations. Mr.West,asanownerofTidal,is Mr. WestandSCEviaTwitter—andrebroadcast bythemedia—regarding 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 permanently exclusivethroughtheTidalstreamingplatform.Moreover,notonlywas indicate thatthealbumwouldnotbeapermanentexclusiveonTidal. made byTidal.SCEthenfailedtocorrectanystatementsMr. West,orotherwise exclusive methodoflisteningtothealbumviaTidal’sTwitterfeedandotherrepresentations broadcast totheworld.Moreover,SCEandMr.WestalsorepresentedthatTidalwouldbe LASS madeavailablethroughTidal’scompetitors,butitwasplatforms A 90. 94. 93. 92. 91. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 23 of 26 CTION
Plaintiff andmembersoftheClass—includingminors asyoung13yearsold— Plaintiff Baker-RhettandtheClassjustifiablyreliedonstatements madeby Mr. WestandSCEintentionallymadetheaforementionedmisrepresentationsfor The representationsmadebyMr.WestandSCEabout Mr. WestandSCE’srepresentationswereinfactfalse. C OMPLAINT The LifeofPablo
), areactionableadvertisementsandrepresentations. 23 The LifeofPablo The LifeofPablo The LifeofPablo Th being C wasnot e Lifeof ASE
as
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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,creditcard and socialmedia retain suchbenefits.Specifically,DefendantshavereceivedandretainedPlaintiffBaker-Rhett Rhett andtheClassthroughafraudulentschemethatwouldrenderitunjusttoallowthem excluding paragraphs60-91. LASS A 95. 98. 97. 96. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 24 of 26 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 LifeofPablo
wouldbeavailableexclusively C ASE
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the Classinanamounttobedeterminedattrial; unjustly enrichedasaresult; Law (Cal.Bus.&Prof.Code§§17200, 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, Plaintiff seeksanorderrequiringallpersonalandcreditcardinformationwronglyacquiredby restitution anddisgorgementofallmoniesunjustlyreceivedretainedbyDefendant.Further, unjustly receivedasaresultofitswrongfulconductdescribedherein. Plaintiff Baker-RhettandtheClass,orincreasedvalueoftheirequityinTidalthatthey permitted toretainthemoney,creditcardinformation,andpersonalinformationbelonging amount tobedetermined attrial; C increased asadirectresultofthemisrepresentations, aswellotherdirectmonetarybenefits. LASS A WHEREFORE 101. 100. 99. D. C. B. A. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 25 of 26 CTION
Declaring thatDefendants’actions,assetoutabove,constituteviolationsof Certifying thiscaseasaclassactiononbehalfoftheClassdefinedabove, Accordingly, PlaintiffBaker-Rhett,individuallyandonbehalfoftheClass,seeks Under principlesofequityandgoodconscience,Defendantsshouldnotbe Defendants appreciateandhaveknowledgeofsuchbenefits. Awarding appropriaterestitutiontoPlaintiff Baker-Rhett andtheClassinan Awarding actualdamages andpunitivedamageswhere applicable,toPlaintiffand C OMPLAINT , PlaintiffBaker-Rhett,individuallyandonbehalfoftheClass, an
orderdirectingDefendantstocancelthenegativeoptionaspectsof PRAYER FORRELIEF et seq. ), fraudulentinducement,andthattheywere 25
C ASE
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C OneofPlaintiff’sAttorneys E [email protected] Jay Edelson* Dated: April18,2016 all wrongful andunlawfulactsdescribedherein; interests oftheClass,including, trials createdduringtheclassperiod; to PlaintiffandmembersoftheClass; data; *Motion foradmission Fax Tel: 312.589.6370 Chicago, Illinois60654 350 NorthLaSalleStreet,13thFloor pro hacvicetobefiled DELSON LASS owable; and : 312.589.6378 A G. F. E. Plaintiff demandsatrialbyjuryforallissuessotriable. K. J. I. H. Case 4:16-cv-02013-KAW Document 1 Filed 04/18/16 Page 26 of 26 CTION
PC
Requiring Defendantstoceaseallmonetizationeffortsthat rely ontheirpersonal Awarding suchfurtherandotherrelieftheCourtdeemsreasonablejust. Awarding PlaintiffandtheClasspre-post-judgmentinterest,toextent Awarding reasonablelitigationexpensesandattorneys’fees; Awarding injunctiveandotherequitablereliefasisnecessarytoprotectthe Requiring Defendantstocancelthenegativeoptionaspectsofalloutstandingfree Requiring thedestructionofallpersonaldatainDefendantspossessionbelonging C OMPLAINT .
inter alia, JURY TRIAL y s odM oa By:/s/ToddM.Logan an orderprohibitingDefendantsfromengaginginthe behalf ofallotherssimilarlysituated, JUSTIN BAKER-RHETT Respectfully submitted, 26 E [email protected] Todd M.Logan(SBN305912) Counsel forPlaintiffandthePutativeClass Fax: 415.373.9435 Tel: 415.212.9300 San Francisco,California94107 329 BryantStreet,Suite2C DELSON PC
, individuallyandon C ASE
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