Jack Dorsey, Block Board Beat Investor Suit Over Jay-Z Deal (1)

Block Inc.'s senior leaders, including billionaire founder Jack Dorsey, defeated shareholder litigation Tuesday over the company’s $237 million deal for a majority stake in Tidal, a music streaming service backed by Jay-Z.

Chancellor Kathaleen St. J. McCormick dismissed the case from Delaware’s Chancery Court, where judges sitting without juries specialize in business disputes that can have blockbuster stakes. Jay-Z recently resolved a bitter, multibillion-dollar battle in the same court with Bacardi over their joint cognac venture, D’Usse.

McCormick, writing in a 28-page ruling, found that Block’s board acted without conflicts of interest when it approved the transaction “despite the obvious ...