Hipgnosis Songs Fund to seek indemnity from Mercuriadis over legal claims

(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)