Judge Rules Jack Dorsey Was Allowed to Make "Terrible" Decision to buy Tidal From JAY-Z

In 2021, ex-Twitter boss Jack Dorsey's new company Square bought Tidal from JAY-Z for about $300 million in cash and stock.

Dorsey had been friends with Hov and had previously loaned Tidal $50 million.

The deal was criticized because Tidal hadn't grabbed much market share in the streaming market and wasn't trending in the right direction.

In January, the Coral Springs Police Officers’ Pension Plan, who are shareholders in Dorsey's company, sued Dorsey for the purchase, arguing he was the sole board member pushing for the sale.  In the suit, they described Tidal as  “failing financially, losing its major contracts, and facing an ongoing criminal investigation."

Last week, the judge dismissed the suit.  But not without some shade for Dorsey and Tidal.

"It seemed, by all accounts, a terrible business decision,” the judge wrote in her ruling to dismiss.  "Under Delaware law, however, a board comprised of a majority of disinterested and independent directors is free to make a terrible business decision without any meaningful threat of liability, so long as the directors approve the action in good faith."