Jay Z’s company hit with lawsuit over Tidal purchase

Looks like Jay Z can add another problem to the list.

The rapper/entrepreneur’s company, S. Carter Enterprises, has been hit with a lawsuit over his purchase of the digital music service Tidal, by a pair of plaintiffs who say they were stiffed on their fees for services rendered.

In their suit, filed in federal court in New York on Wednesday, Roschier Advokatbyrå AB and Skandinaviska Enskilda Banken AB — described as “respectively a premier Scandinavian law firm and financial institution” — to aid in the 2015 purchase of Tidal owner Aspiro AB.

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“Under the terms of their respective retention agreements with Carter Enterprises, Roschier and SEB performed valuable services for Carter Enterprises that helped bring the Tidal deal to fruition,” the suit reads. “Carter Enterprises accepted and benefited from those services, without complaint or dispute, but has failed to pay for them as promised.”

According to the suit, the two companies are owed a combined outstanding balance of approximately $598,383 for their services.

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The suit also takes a poke at Jay Z, suggesting that he might have over-hyped how many subscribers the service has.

“Jay Z has claimed — perhaps exaggerating, according to press accounts — that Tidal has as many as 3 million subscribers,” the suit reads. “Whatever the size of its subscriber base, Tidal appears to be a successful business, having just last year sold a 33-percent stake to telecommunications provider Sprint at a $600 million valuation for the business as a whole.”

The breach of contract complaint says that Jay Z’s company “has never disputed” the debts claimed in the suit, adding, “To the contrary, Carter Enterprises has acknowledged and promised to pay both debts in full.”

TheWrap has reached out to a representative for Jay Z for comment on the suit.

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