Spotify is facing a new class action lawsuit accusing the company of turning a "blind eye” to “mass-scale fraudulent streaming.” According to Rolling Stone, the filing alleges that Drake has been profiting from “billions” of fake streams as a result. The lawsuit lists rapper RBX as a plaintiff in the case, both individually and "on behalf of other members of the general public similarly situated."
“Every month, under Spotify’s watchful eye, billions of fraudulent streams are generated from fake, illegitimate, and/or illegal methods," the lawsuit alleges, arguing that the situation “causes massive financial harm to legitimate artists, songwriters, producers, and other rightsholders.”
The filing explains that Spotify pays out royalties through a “streamshare” model, in which all streams are grouped together. Payments are later made out by calculating a percentage to determine each artist’s share of those total streams. In turn, the lawsuit argues fake streams would devalue the payout to smaller artists.
Is Drake Being Sued?
Despite claiming the use of bots and fake streams is a prominent issue on the platform, the lawsuit only names Drake specifically. It claims Spotify already “knows or should know” about a substantial amount of information that can prove the Toronto rapper has been profiting from bot accounts. However, he is not listed as a defendant in the case, nor is he accused of any criminal conduct.
The plaintiffs are seeking a jury trial to determine compensatory and punitive damages. The filing alleges rights holders have been defrauded out of “hundreds of millions of dollars" as a result of the alleged actions of Spotify.
While Drake isn't a defendant in the Spotify case, he is facing another class action lawsuit alongside Adin Ross and the online casino, Stake. The filing accuses the group of allegedly promoting illegal and predatory gambling.
