What Is the Spotify Lawsuit?
The Spotify lawsuit is a group of separate legal cases against Spotify rather than one single lawsuit, and the phrase covers class actions, an individual artist suit, and older royalty disputes. As of October 31, 2026, the two cases that draw the most searches, Capolongo v. Spotify USA Inc. and Collins v. Spotify USA, Inc., are no longer proceeding as class actions.
Capolongo is a proposed consumer class action in the U.S. District Court for the Southern District of New York, filed on November 4, 2025, over Spotify's Discovery Mode program. Collins is a proposed class action in the U.S. District Court for the Central District of California, filed in November 2025 by the rapper Eric Dwayne Collins, known as RBX, over alleged bot-generated streams.
People searching for the Spotify lawsuit also find older cases that ended earlier, such as a songwriter class settlement and a publisher settlement from 2018, and cases that Spotify itself brought. Those are separate matters and are compared in the related cases section below.
Why Was the Spotify Lawsuit Filed?
The Spotify lawsuit was filed in three separate forms between November 2025 and June 2026, and each plaintiff says Spotify misrepresented how music is ranked, counted, or recommended.
Genevieve Capolongo, a Spotify subscriber, alleges that Spotify presents playlists as personalized to a listener's taste while its Discovery Mode program lets artists and labels trade a lower royalty rate for algorithmic priority. Reports describe that rate as about 30% lower, and her complaint calls the practice "modern payola," a term for undisclosed paid promotion.
Eric Dwayne Collins alleges that bot accounts inflated billions of Drake streams and that Spotify did nothing to stop it. He said the fraud could mean hundreds of millions of dollars in falsely earned royalties, and his complaint pleaded negligence and a violation of California's Unfair Competition Law. Drake is not a defendant, and the allegations about his streams were never tested in discovery.
Mark Kratter, an independent musician, alleges that Spotify made an undisclosed change to its streaming and recommendation system in March 2026 that kept legitimate plays from being counted as streams.
What Harms Does the Spotify Lawsuit Allege?
The Spotify lawsuit alleges harms in three distinct categories: deceptive personalization, ignored streaming fraud, and uncounted legitimate streams. Each belongs to a different plaintiff and a different case, and none has been proven, because the rulings so far addressed arbitration terms and the sufficiency of the pleadings rather than the merits.
Deceptive Personalization
Deceptive personalization is a claim that a service describes its recommendations as tailored to the user when other factors, such as paid promotion, also shape what the user sees.
Capolongo alleges that Spotify tells listeners its playlists reflect their own tastes while Discovery Mode gives paying artists and labels a boost in algorithmic feeds. Coverage of the complaint lists false advertising, fraudulent inducement, and unjust enrichment as the causes of action, and it sought more than $5 million for a proposed class.
No court has ruled on whether the personalization claim is true, since the case moved to arbitration before any merits decision.
Streaming Fraud
Streaming fraud is the use of automated accounts, called bots, to play tracks repeatedly and generate streams that do not reflect real listening.
Collins alleges that a network of bot accounts generated a non-trivial share of billions of Drake streams and that Spotify turned a blind eye to it. Because streaming royalties are paid from a shared pool, the complaint argues that inflated streams for one artist reduce what real listening earns for others.
The court held that Collins had not shown Spotify owed him a legal duty to protect him from third-party bots, and it found no deceptive statement about Spotify's anti-fraud policies.
Uncounted Streams
An uncounted streams claim is an allegation that a platform failed to count plays that were real listening, which can reduce the royalties an artist earns.
Kratter alleges that filtering rules adopted in March 2026 kept categories of legitimate listening, including algorithmic background listening, low-interaction sessions, and Spotify Radio plays, from counting as streams. He says fewer of his tracks reached the 1,000 annual streams needed to earn recorded royalties, and he cites his own streaming data from before and after the change.
Spotify had not responded to a request for comment when Digital Music News reported the complaint, so the company's side of this claim is not yet public.
What Is the Current Status of the Spotify Lawsuit?
The current status of the Spotify lawsuit is that both federal class actions have ended in Spotify's favor on procedural grounds, while the individual Connecticut artist suit is the only one of the three that appears to remain pending. The tables below give each case's court, judge, and latest ruling.
Capolongo v. Spotify USA Inc.
Capolongo v. Spotify USA Inc. left the courtroom for private arbitration on April 30, 2026, when Judge John G. Koeltl granted Spotify's motion to compel arbitration. The court found that Capolongo accepted Spotify's Terms of Use, including the arbitration clause and class action waiver, by continuing to use the service after notices of updated terms.
| Court | U.S. District Court, Southern District of New York, federal court |
| Case number | 1:25-cv-09216 |
| Judge | John G. Koeltl |
| Filing date | November 4, 2025 |
| Plaintiff | Genevieve Capolongo, a Spotify subscriber |
| Defendant | Spotify USA Inc. |
| Claims | Reported as false advertising, fraudulent inducement, and unjust enrichment over Discovery Mode |
| Outcome | Motion to compel arbitration granted and case stayed, April 30, 2026 |
| Arbitration | Individual arbitration administered by National Arbitration and Mediation |
The ruling decided where the dispute is heard, not whether Discovery Mode misled anyone. Secondary coverage reports that the class claims were dismissed with prejudice, a detail this page could not confirm from the court's own opinion.
Collins v. Spotify USA, Inc.
Collins v. Spotify USA, Inc. ended in a federal dismissal with prejudice in October 2026, which Digital Music News reported on October 26. Judge Josephine L. Staton found that the amended complaint offered only conclusory statements that Spotify turned a blind eye to artificial streaming, and she held that further leave to amend would be futile.
| Court | U.S. District Court, Central District of California, federal court |
| Case number | 2:25-cv-10525 |
| Judge | Josephine L. Staton |
| Filing date | November 2, 2025, per PacerMonitor |
| Plaintiff | Eric Dwayne Collins, known as RBX |
| Defendant | Spotify USA, Inc. |
| Claims | Negligence and violation of California's Unfair Competition Law |
| Outcome | Dismissed with prejudice, October 2026 |
| Appeal | A lawyer for the plaintiff was quoted saying an appeal is likely |
The court first dismissed the original complaint on June 22, 2026, with permission to amend, and Spotify AB had been terminated as a defendant on February 2, 2026. An appeal to the Ninth Circuit is possible, but no appeal had been confirmed as of October 31, 2026.
Kratter v. Spotify
Kratter v. Spotify is an individual damages suit that Mark Kratter, a Norwalk-based musician and attorney, filed in Stamford Superior Court in Connecticut in June 2026. It appeared to remain pending in the most recent coverage this page reviewed, and Spotify had not commented when Digital Music News reported it on June 23, 2026.
| Court | Stamford Superior Court, Connecticut, state court |
| Filing date | June 2026 |
| Plaintiff | Mark Kratter, an individual musician |
| Defendant | Spotify |
| Claims | Connecticut Unfair Trade Practices Act and other claims, not fully listed in coverage |
| Relief sought | Damages in an unstated amount, a temporary injunction, and an accounting of filtered streams |
| Docket status | Pending as of the latest coverage reviewed |
The case is not a class action, so it does not create a group of claimants who could join it.
Did Spotify Settle the Lawsuit?
No. Spotify has not settled either of the two federal class actions in the Spotify lawsuit, and no settlement fund, claim form, or payment date exists for them.
Both federal cases ended through a court ruling rather than a deal, and no court has decided whether Discovery Mode or Spotify's anti-fraud practices were unlawful. Any outcome in the Connecticut case or in individual arbitration depends on that proceeding alone, and only a qualified attorney reviewing the specific facts can say what a claim is worth.
Spotify did settle older, unrelated cases, including the Ferrick songwriter class action and the Wixen publisher suit, but those are separate lawsuits described in the related cases section below.
The "$500 payout" that circulates online is not an award. OpenClassActions reports that $500 was the per-person statutory amount the Capolongo complaint requested, and that the plaintiff's own briefing estimated her actual damages at roughly $5 to $21.
No sign-up or claim deadline applies, because with the class claims ended there is no class to join, and any site advertising a Spotify settlement claim form deserves caution.
Spotify Lawsuit Updates and Case Status
Here are the latest Spotify lawsuit updates, covering new filings and rulings in the cases against Spotify as they are confirmed. As of October 2026, the two main Spotify class actions have ended as class cases and no Spotify settlement is pending, and the timeline below lists every verified development, including older Spotify royalty cases, in order.
Spotify Lawsuit Timeline of Events
Judge Staton Dismisses Collins v. Spotify With Prejudice
Judge Josephine L. Staton of the Central District of California dismissed Collins v. Spotify USA, Inc. with prejudice in October 2026, as Digital Music News reported on October 26. She found the amended complaint's claim that Spotify turned a blind eye to bot streams conclusory and ruled that further leave to amend would be futile.
Eric Dwayne Collins Files an Amended Complaint Against Spotify
Eric Dwayne Collins, known as RBX, filed an amended complaint in Collins v. Spotify USA, Inc., No. 2:25-cv-10525, on July 13, 2026, per PacerMonitor. The filing answered Judge Staton's June 22 dismissal with permission to amend.
Mark Kratter's Connecticut Suit Against Spotify Is Reported
Digital Music News reported on June 23, 2026 that Mark Kratter had filed an individual suit in Stamford Superior Court in Connecticut. The complaint alleges that an undisclosed March 2026 change to Spotify's streaming system kept legitimate plays from counting.
Judge Staton Dismisses the First Collins Complaint With Leave to Amend
Judge Josephine L. Staton granted Spotify's motion to dismiss Collins v. Spotify USA, Inc. on June 22, 2026, and gave Eric Dwayne Collins permission to file an amended complaint.
Judge Koeltl Sends the Capolongo Discovery Mode Case to Arbitration
Judge John G. Koeltl of the Southern District of New York granted Spotify's motion to compel arbitration in Capolongo v. Spotify USA Inc., No. 1:25-cv-09216, and stayed the case on April 30, 2026. The court found that Genevieve Capolongo accepted the Terms of Use and its class action waiver by continuing to use Spotify.
Judge Rakoff Enters a $322.2 Million Default Judgment for Spotify Against Anna's Archive
Judge Jed Rakoff of the Southern District of New York entered a default judgment of about $322.2 million for Spotify and three major record labels against the pirate library Anna's Archive on April 14, 2026. Coverage describes the award as largely uncollectable because the operators are anonymous and did not appear.
Spotify AB Is Terminated as a Defendant in Collins
PacerMonitor's docket for Collins v. Spotify USA, Inc. shows that Spotify AB was terminated as a defendant on February 2, 2026, leaving Spotify USA, Inc. as the defendant.
Eight Mile Style Drops Its Appeal of Spotify's Copyright Win
The Sixth Circuit granted a joint stipulation in December 2025 dismissing Eight Mile Style's appeal in its copyright suit over Eminem's songs against Spotify. The dismissal ended a dispute that began in 2019.
Genevieve Capolongo Files the Discovery Mode Class Action
Genevieve Capolongo, a Spotify subscriber, filed Capolongo v. Spotify USA Inc. in the Southern District of New York on November 4, 2025, alleging that Discovery Mode is "modern payola." The proposed class action sought more than $5 million in damages.
Eric Dwayne Collins Files the Fake Streams Class Action
Eric Dwayne Collins, known as RBX, filed Collins v. Spotify USA, Inc. in the Central District of California on November 2, 2025, according to PacerMonitor. The complaint alleges that Spotify ignored bot-generated streams.
Judge Torres Dismisses the Mechanical Licensing Collective's Bundling Suit
Judge Analisa Torres of the Southern District of New York dismissed Mechanical Licensing Collective v. Spotify, No. 1:24-cv-03809, in January 2025, after finding that Spotify's reclassification of Premium as a bundle was lawful. The court later vacated the judgment so the collective could seek leave to amend, and the collective has sought to appeal.
Judge Trauger Rules for Spotify in the Eight Mile Style Copyright Case
Judge Aleta Trauger of the Middle District of Tennessee granted summary judgment to Spotify in August 2024 in Eight Mile Style's copyright suit over Eminem's songs. Her ruling found that the publisher's delay in suing was a strategic choice meant to build damages.
Car Thing Buyers Voluntarily Dismiss Their Spotify Class Action
Digital Music News reported on July 10, 2024 that the plaintiffs in the Car Thing class action against Spotify filed a notice of voluntary dismissal without prejudice. The Southern District of New York case, filed in May 2024, concerned buyers of the discontinued Car Thing device.
The Mechanical Licensing Collective Sues Spotify Over Bundling
The Mechanical Licensing Collective sued Spotify in the Southern District of New York in mid-May 2024, alleging that Spotify underreported its royalty-bearing revenue by treating Premium as a bundle with audiobooks. Reuters reported that the complaint cited an estimate that the move could cost songwriters nearly $150 million over a year.
Spotify Settles the $1.6 Billion Wixen Publishing Lawsuit
Spotify and Wixen Music Publishing announced a settlement of Wixen's roughly $1.6 billion copyright suit on December 20, 2018, and did not disclose the terms. Wixen had filed the suit in December 2017 over songs it said Spotify streamed without proper licenses.
The Court Gives Final Approval to the Ferrick v. Spotify Class Settlement
The Southern District of New York granted final approval on May 22, 2018 to the Ferrick v. Spotify USA Inc. class settlement, which carried an immediate cash payment of $43.45 million for songwriters and publishers. Wixen Publishing was among the objectors, and Judge Alison Nathan overruled its objections.
What Has Spotify Said About the Spotify Lawsuit Allegations?
Spotify has said the Capolongo allegations are wrong about how Discovery Mode works, and it called the suit nonsense. The company said Discovery Mode is not used in all algorithmic playlists and is not used in Discover Weekly or DJ, as the complaint claims.
In court, Spotify argued that listeners waived the right to sue by accepting its Terms of Use, which contain an arbitration clause and a class action waiver, and Judge Koeltl agreed, as the status section above describes.
In Collins, Spotify moved to dismiss both the original and the amended complaints, and the court granted both motions. Spotify had not commented publicly on Kratter when that case was reported.
| Case | Spotify's position | Result so far |
|---|---|---|
| Capolongo v. Spotify USA Inc. | Discovery Mode is limited, and users agreed to arbitrate individually | Sent to individual arbitration |
| Collins v. Spotify USA, Inc. | No duty to protect an artist from third-party bots, and no deceptive statements | Dismissed with prejudice |
| Kratter v. Spotify | No public response found | Pending |
How Does the Spotify Lawsuit Compare to Other Spotify Cases?
The Spotify lawsuit differs from the older Spotify cases because those were brought by rights holders over licensing and royalty payments, while the 2025 and 2026 cases are brought by a listener and artists over how Spotify ranks, recommends, and counts music.
Spotify has also appeared as a plaintiff. In the Anna's Archive case, Spotify and three major labels won a default judgment of about $322.2 million in April 2026, which coverage calls unlikely to be collected because the operators are anonymous.
| Case | Who sued | Court | Subject | Status |
|---|---|---|---|---|
| Ferrick v. Spotify USA Inc. | Songwriters and publishers (class) | S.D.N.Y. | Unlicensed use of compositions | Settled for $43.45 million; final approval May 22, 2018 |
| Wixen Music Publishing v. Spotify | A music publisher | U.S. federal court | Unlicensed songs, about $1.6 billion sought | Settled on undisclosed terms, December 2018 |
| Mechanical Licensing Collective v. Spotify | A nonprofit royalty collective | S.D.N.Y. | Premium bundling and mechanical royalties | Dismissed January 2025; later appeal steps not fully confirmed |
| Eight Mile Style v. Spotify | Eminem's publisher | M.D. Tenn. | Copyright in streamed songs | Spotify won summary judgment August 2024; appeal dismissed December 2025 |
| Car Thing buyers v. Spotify | Three buyers (proposed class) | S.D.N.Y. | Discontinued Car Thing device | Voluntarily dismissed without prejudice, 2024 |
| Spotify v. Anna's Archive | Spotify and three major labels | S.D.N.Y. | Scraping and copyright | Default judgment of about $322.2 million, April 14, 2026 |
The $1.6 billion figure in searches such as "spotify $1.6 billion lawsuit" refers to the Wixen publishing suit, not to the Discovery Mode, bot streaming, or filtering cases.
Frequently Asked Questions
What is the Spotify lawsuit about?
The Spotify lawsuit is about several separate cases, mainly a proposed class action alleging that Spotify's Discovery Mode passed off paid promotion as personalized recommendations, a class action alleging that Spotify ignored bot-generated fake streams, and an individual suit alleging that a March 2026 change stopped real plays from counting.
Is there a Spotify class action lawsuit to join?
No. There is no Spotify class action lawsuit to join as of October 31, 2026, because the Capolongo class claims were sent to individual arbitration and the Collins class action was dismissed with prejudice.
Is the Spotify payola lawsuit still going?
The Spotify payola lawsuit is no longer going as a class action. Judge John G. Koeltl sent Capolongo v. Spotify USA Inc. to individual arbitration on April 30, 2026, so only Genevieve Capolongo's own claims continue there.
Can you get $500 from the Spotify lawsuit?
No. You cannot get $500 from the Spotify lawsuit, because no settlement or claim process exists, and the $500 figure was a per-person amount the Capolongo complaint requested, not an award.
Did Spotify win the Drake fake streams lawsuit?
Yes. Spotify won the Drake fake streams lawsuit when Judge Josephine L. Staton dismissed Collins v. Spotify USA, Inc. with prejudice in October 2026, after finding no duty owed to the plaintiff and no deceptive statements about anti-fraud policies. Drake was never a defendant, and a lawyer for the plaintiff said an appeal is likely.
Did Spotify settle the lawsuit?
No. Spotify did not settle the Capolongo or Collins cases, but it settled older songwriter and publisher cases, including the Ferrick class action for $43.45 million and the Wixen suit in December 2018.
Is the $1.6 billion Spotify lawsuit the same as the payola lawsuit?
No. The $1.6 billion Spotify lawsuit was the Wixen Music Publishing copyright suit, which settled in December 2018, and it is a different case from the Discovery Mode payola lawsuit that Capolongo filed in November 2025.