String.GMatch

I'm trying to read the lines of a file and separate them by their lines, however I can't seem to get it to work. Using:
string.gmatch("\r\n", file.Read("file.txt", "DATA"));
I come up with an error saying nil value on the second argument, this makes me think the file is not being read (As in wrong directory). I have the path data/file.txt which I have tried moving to the commands/ directory (where the file where the string.gmatch command is located) and the same directory as the plugin.ini, as a taken example from Atebite's random name setter, however mine doesn't seem to be working.
Any suggestions would be appreciated.

 

Thanks for your reply.
I'm attempting to separate the strings by the new lines rather than replacing the new lines.
I've used: local cpdata = string.gmatch("\r\n", file.Read("cpdata.txt", "DATA"));
And am trying to pass the data into the variable cpdata so I can use it like so later on: name = cpdata[1]. I've taken example from Atebite's random name setter and everything seems to be in order?
If you understood my meaning and the answer you provided was still correct then how might I go about achieving what I needed using it?
Any further advice?

 

Nevermind, I've fixed it and was being an idiot.

EDIT: I appear to be getting a new error now, on attempting:
name = cpdata[1]
I get: "Attempting to index local 'cpdata' (a function value)" As an error.
I've managed to fix it, another stupid mistake.