Hipgnosis Songs Fund looks to secure indemnity from Merck Mercuriadis

26th Feb 2024 09:46

(Sharecast News) - Music royalties investor Hipgnosis Songs Fund said on Monday that it was now seeking to secure an indemnity from Merck Mercuriadis and Hipgnosis Songs Management following the issuance of High Court proceedings against both.

Hipgnosis Songs Fund said has been informed by Mercuriadis that he was refusing to indemnify the company against liabilities which may arise from his alleged misconduct. On 19 February, investment adviser, Hipgnosis Songs Management, also refused to give such an indemnity.

The London-listed group told investors that it now intends to bring a Part 20 Claim against Mercuriadis in the High Court, in which it will seek a full indemnity.

Hipgnosis Songs' lawsuit involves claims from Hipgnosis Music, a company Mercuriadis was a director of, alleging an unlawful diversion of business opportunities to Hipgnosis Songs Fund and its investment advisor, Hipgnosis Songs Management. It was looking to recover a substantial but unspecified sum, with Hipgnosis Music securing litigation funding.

The fund had disclosed the lawsuit back in November 2023, and appointed Kastle Solicitors to independently review the allegations.

As of 0945 GMT, Hipgnosis shares were down 0.41% at 63.34p.

Reporting by Iain Gilbert at Shareccast.com