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Hipgnosis Songs Fund to seek indemnity from Mercuriadis over legal claims
Global Banking & Finance Review®
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(Reuters) -Hipgnosis Songs said on Monday it is seeking protection from founder Merck Mercuriadis against a legal claim launched by a former
(Reuters) -Hipgnosis Songs said on Monday it is seeking protection from founder Merck Mercuriadis against a legal claim launched by a former business against the music royalties fund, its investment adviser and the industry veteran.
Hipgnosis Music Limited (HML), founded in 2015 and now being wound up, had served proceedings in November alleging “a diversion of business opportunity” to the London-listed fund and Hipgnosis Song Management (HSM), which Mercuriadis founded in 2017.
Hipgnosis’ board recently appointed solicitors to review the claim, it said in a statement.
It has previously said it was not insured against the cost of dealing with the claim.
“As any liability of the company arises from Mr Mercuriadis’ conduct and knowledge, the company intends to seek to secure an indemnity from Mr Mercuriadis and Hipgnosis Songs Management against any liability that might be incurred by the company …,” Hipgnosis said in a statement.
Mercuriadis, who has managed bands including Guns N’ Roses and artists such as Elton John and Beyonce, stepped down as HSM’s CEO and will take on the newly-created role of chairman, the company said on Friday.
(Reporting by Eva Mathews in Bengaluru; Editing by Varun H K)
Indemnity refers to a security or protection against financial loss or legal liability. It often involves compensation for damages or losses incurred.
A legal claim is a formal assertion of a right or demand for compensation, typically made in a court of law.
Investment management is the professional management of various securities and assets to meet specified investment goals for the benefit of investors.
A music royalties fund is an investment vehicle that acquires and manages the rights to music royalties, generating income from the use of those rights.
A financial adviser provides guidance on financial planning, investments, and managing assets to help clients achieve their financial goals.
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