Spotify Lawsuit: The Payola Case, the RBX/Drake Suit, and Whether Users Get Paid
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If you searched “Spotify lawsuit” this year, you most likely ran into one of two cases. A subscriber's “payola” class action over Discovery Mode lost its class claims on April 30, 2026 and was sent to individual arbitration. The rapper RBX's suit over bot streams on Drake's catalog was dismissed, refiled on July 13, 2026, and now faces a second motion to dismiss. As of September 30, 2026 there is no Spotify settlement, no fund and no claim form for listeners.
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Reviewed by Leonard Goldberg, Editor · Last updated
What the Two 2026 Cases Say
The payola case (listeners). A Spotify subscriber alleged that “Spotify's playlists and recommendations are shaped by undisclosed pay-for-play arrangements and hidden commercial incentives,” while Spotify markets them as “made just for you.” The target is Discovery Mode, which the complaint says lets artists and labels boost selected tracks on algorithmic playlists, Autoplay and Radio “only if they accept reduced royalty rates.” The complaint calls it “the latest form of payola” and pleads New York's deceptive-practices and false-advertising laws, fraudulent inducement and unjust enrichment.
The RBX case (artists and rights holders). Eric Dwayne Collins, who records as RBX, alleges that Spotify polices fake streams on smaller releases but does not apply “that same scrutiny” to the catalogs of “A-list” artists “such as Drake.” His amended complaint estimates that streaming fraud “diverted at least $600 million in royalties away from music rights holders” over a nearly 48-month period through 2025, because every fake stream takes a slice of the same royalty pool. One example it gives: at least 250,000 streams of Drake's “No Face” over four days in 2024 that allegedly originated in Turkey and were routed through VPNs. Drake is not a defendant. Responding to the original suit in November 2025, Spotify said it “in no way benefits from the industry-wide challenge of artificial streaming.” These are allegations; no court has found them true.
Case Details
The payola case is Capolongo v. Spotify USA Inc., No. 1:25-cv-09216, filed November 4, 2025 in the U.S. District Court for the Southern District of New York before Judge John G. Koeltl. The RBX case is Eric Dwayne Collins v. Spotify USA, Inc., No. 2:25-cv-10525, filed November 2, 2025 in the Central District of California before Judge Josephine L. Staton.
Two other cases carry the Spotify name but pay nothing to listeners. Mechanical Licensing Collective v. Spotify USA Inc., No. 1:24-cv-03809 (S.D.N.Y.), filed May 16, 2024, is a songwriter-royalty dispute over whether Premium counts as a “bundle” with audiobooks; it was dismissed with prejudice on January 29, 2025, and the MLC filed an amended complaint on October 1, 2025. Kratter v. Spotify USA Inc., No. 3:26-cv-01055 (D. Conn.), is an independent artist's suit over what it calls “undisclosed filtering practices,” alleging that Spotify quietly changed its streaming and recommendation system in March 2026; an amended complaint was filed there on September 16, 2026.
Status on September 30, 2026: No Settlement for Users
RBX case: pending, not certified. On June 22, 2026 Judge Staton dismissed the negligence and unfair-competition claims but allowed an amended complaint within 21 days. RBX refiled on July 13, 2026. On August 11, 2026 Spotify moved again to dismiss — this time asking for dismissal “with prejudice and without leave to amend” — and opposition papers were filed on September 11, 2026. No ruling on that motion appears on the docket as of September 30, 2026.
Neither case has a settlement, a fund, an administrator, a claim form or a deadline.
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Are You in Any of These Cases?
If you are a listener or subscriber: the payola complaint proposed a class of all persons in the United States who used Spotify. That class no longer exists — the claims were dismissed with prejudice, and the court enforced Spotify's terms, which require disputes to be decided by “binding individual (not class) arbitration” through National Arbitration and Mediation (NAM).
If you are an artist, songwriter or label: the RBX case proposes a class of U.S. residents who, since January 1, 2018, held royalty rights in content hosted on Spotify. It is a proposal only — no class has been certified, and there is nothing to sign up for. If a class is ever certified or a settlement reached, a court-approved notice would say so. The MLC case is brought by the Mechanical Licensing Collective itself; any recovery there would flow through mechanical royalties, not to subscribers.
Is There Money? The Honest Answer
The RBX case asks for money for rights holders, not listeners, and only if it survives Spotify's pending motion to dismiss. The $600 million figure is the plaintiff's estimate of diverted royalties, not a damages award. In the MLC dispute, Spotify itself puts the exposure at approximately €473 million for March 1, 2024 to June 30, 2026 — but only if the MLC were entirely successful on its bundle theory, and that money would go to songwriters and publishers as royalties.
The largest Spotify class settlement we found paid songwriters: the Ferrick/Lowery settlement approved on May 22, 2018, reported at $112.5 million including $43.5 million for class-member songwriters. It is closed. For settlements that are actually taking claims today, see open class action settlements.
Spotify Lawsuit Timeline
- 1
May 22, 2018 — Songwriter Settlement Approved
Judge Alison Nathan approves the Ferrick/Lowery class settlement over unlicensed use of songwriters' compositions, reported at $112.5 million. It covered songwriters, not listeners, and is closed.
- 2
November 2025 — Two New Class Actions
RBX sues in the Central District of California on November 2 over bot streams; a subscriber sues in the Southern District of New York on November 4 over Discovery Mode “payola.”
- 3
April 30, 2026 — Payola Case Sent to Arbitration
Judge Koeltl compels individual arbitration under Spotify's terms, dismisses the class claims with prejudice and stays the case.
- 4
June 22, 2026 — RBX Complaint Dismissed
Judge Staton dismisses the negligence and unfair-competition claims but gives RBX 21 days to file an amended complaint.
- 5
July 13, 2026 — RBX Refiles, Citing $600 Million in Diverted Royalties
The amended complaint estimates at least $600 million in diverted royalties and names Drake's catalog as the main example. Drake is not a defendant.
- 6
Now — Motion Pending, Nothing to Claim
Spotify's August 11 motion to dismiss the amended RBX complaint is opposed (September 11) with no ruling on the docket. No Spotify settlement or claim form exists.
Three Things to Watch For
A widely searched “Spotify class action” with no claim form is exactly the gap imposters fill:
“Claim your $500 from Spotify”
The $500 figure comes from the payola complaint, which asked under New York law for “actual damages or five hundred dollars, whichever is greater.” It was a request, never an award, and the class claims behind it were dismissed with prejudice on April 30, 2026. A page asking for your Spotify login or card to “release” it is not connected to any court.
“Sign up to join the Spotify class action”
There is no certified class to join, and the court enforced Spotify's individual-arbitration clause. Anyone charging a fee to “register” you is selling nothing. A law firm offering to bring an individual arbitration for you is offering a retainer — read its terms as one.
“Spotify settlement payment” emails
With no settlement and no administrator, an email saying a Spotify payment is waiting and asking you to sign in, confirm billing details or pay a processing fee is aimed at your account, not your refund. Real settlement notices name a court-appointed administrator and never ask for your password.
Spotify Lawsuit — Questions People Actually Ask
Is there a Spotify class action I can join?
No. As of September 30, 2026 no Spotify class action is open to listeners. The payola case lost its class claims on April 30, 2026, and the RBX case is limited to rights holders and has not been certified. You never “join” a class by signing up online; if a class is certified, members are notified.
Is there a Spotify settlement I can get money from?
No open one. There is no Spotify settlement, no fund and no claim form for users today. The largest past Spotify class settlement we found, approved May 22, 2018 and reported at $112.5 million, paid songwriters and is closed.
What is the Spotify payola lawsuit about?
Capolongo v. Spotify USA Inc. claimed that Discovery Mode, where the complaint says artists accept reduced royalty rates for more algorithmic exposure, turns “personalized” playlists into undisclosed pay-for-play. The court never ruled on whether that is deceptive; it held that the dispute belongs in individual arbitration.
Will Spotify users get $500?
No. The $500 came from the complaint's request under New York's false-advertising law (a separate count asked for fifty dollars). Nothing was awarded, and the class claims were dismissed with prejudice on April 30, 2026.
Is Drake being sued in the RBX case?
No. The only defendant is Spotify USA, Inc. The amended complaint alleges that bot streams inflated catalogs of “A-list” artists such as Drake and that Spotify did not police them as strictly as smaller releases. Spotify said in November 2025 that it “in no way benefits” from artificial streaming, and it has asked the court to dismiss the amended complaint.
What is the MLC lawsuit, and does it affect my subscription?
The Mechanical Licensing Collective, the body designated to administer the blanket mechanical license under U.S. law, says Spotify underpaid by treating Premium as a bundle with audiobooks. The court rejected that theory on January 29, 2025; the MLC's amended complaint of October 1, 2025 challenges how Spotify valued the bundle's parts, and the MLC has asked for permission to appeal the bundle ruling. It is a royalty dispute. If the MLC ultimately won in full on its claim that Premium is not a bundle, Spotify estimates approximately €473 million for March 1, 2024 to June 30, 2026 — paid as royalties, not to subscribers.
Can I still sue Spotify myself?
Spotify's terms require disputes to go to binding individual arbitration before NAM, and the court enforced that clause on April 30, 2026, finding that Spotify had given notice of its current terms by email and by an in-app pop-up. Whether you have a claim worth arbitrating is a question for a licensed attorney.
I bought a Spotify Car Thing. Is there a settlement?
No. Mazumder v. Spotify USA Inc. (No. 1:24-cv-04077, S.D.N.Y.) was filed May 28, 2024 after Spotify announced the $90 device would stop working on December 9, 2024. After Spotify offered refunds to direct purchasers with proof of purchase (third-party purchases excluded), the case was voluntarily dismissed and closed on July 12, 2024.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.
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