Hipgnosis Music Limited takes SONG and Mercuriadis to High Court
Merck Mercuriadis (pictured), founder of Hipgnosis Songs fund (SONG), has been served court proceedings but his former company Hipgnosis Music Limited.
Hipgnosis Music Limited, of which Mercuriadis was a director when it was ordered to shut down in 2018, has served all three parties with High Court proceedings, the trust revealed today.
The claimant alleged there was a «a diversion of business opportunity from Hipgnosis Music Limited» to the company and the investment adviser — Hipgnosis Song Management Limited — and that the company «unlawfully assisted Mercuriadis with, or received, this alleged diversion».
Failed continuation vote leaves Hipgnosis Songs manager in a 'do or die' position
The initial disclosure of the potential claim was added on page 100 of the latest annual report and the update today (23 November), confirmed that proceedings had now been taken to court.
The RNS notice also revealed that SONG is not insured as to the costs of dealing with this claim.
Mercuriadis, the investment adviser and the company have all denied the claims and, in the RNS notice, said they «intend to vigorously defend them».
Both parties have been contacted for further comment.
This lawsuit comes amid a chaotic situation for SONG, after shareholders voted against the continuation of the trust, which forced the board to propose a reconstruction, reorganisation or wind-up of the trust within six months.
The failed vote also saw the collapse of its proposed $440m music catalogue sale to Blackstone.
Hipgnosis continuation votes don't lie (feat. Wyclef Jean)
As a result of the failed continuation vote, the board is carrying out a strategic review of the trust and it said today it intends to appoint independent advisers to conduct
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