Dorsey, Block Board Sued After Buying Jay-Z’s Streaming Service

A pension fund filed suit in Delaware against Jack Dorsey and several other board members at Block Inc.—the former Square Inc.—challenging the payment processor’s $237 million deal for a majority stake in Tidal, the “failed” streaming service backed by music mogul Jay-Z.

The lawsuit, made public Wednesday, accuses Dorsey of forcing through the acquisition of Tidal—which was “beset by controversy,” including fraud allegations—after hatching the plan with his “close personal friend,” also known as Shawn Carter, during a yacht cruise in the Hamptons in 2020.

News of the transaction, which made no business sense, sent Square’s price plunging 7% ...