Hipgnosis Songs Fund (SONG) has provided an update on ongoing litigation between Hipgnosis Music Limited and Mr Mercuriadis, Hipgnosis Songs Management (SONG’s investment adviser, which is majority owned by funds managed and/or advised by Blackstone) and SONG.
Hipgnosis Music Limited (of which Mr Mercuriadis was a director from 16 June 2015 and is still shown as director on Companies House) alleges an unlawful diversion of the Hipgnosis business opportunity by Mr Mercuriadis to SONG and the investment adviser, and seeks to recover an unquantified sum of money. The board of SONG recently become aware that Hipgnosis Music Limited has secured litigation funding.
The board has recently appointed Kastle Solicitors, independently of the other defendants, to review the claim. As any liability of SONG arises from Mr Mercuriadis’ conduct and knowledge, SONG intends to seek to secure an indemnity from Mr Mercuriadis and Hipgnosis Songs Management against any liability that might be incurred by SONG resulting from the actions of Mr Mercuriadis or Hipgnosis Songs Management.