Report: Hipgnosis Songs, Founder MERCK MERCURIADIS Face Legal Claims; Accused Of Stealing "Business Opportunity"

Reuters is reporting that HML, a former business of Hipgnosis Songs founder Merck Mercuriadis, has launched a legal action against the struggling music royalty fund, its investment adviser and Mercuriadis, accusing them of stealing a "business opportunity".

Hipgnosis Music Limited (HML), founded in 2015 and now being wound up, served proceedings alleging "a diversion of business opportunity" from HML to the London-listed fund and investment adviser Hipgnosis Song Management, which were both later founded by Mercuriadis in 2017.

The legal claims adds to troubles at Hipgnosis, which is undertaking a strategic review after its shareholders in October voted against its current structure and plans to sell a chunk of its music catalogues, prompting a reorganization or wind-up within six months.

Mercuriadis, 60, a music industry veteran who has managed the likes of Elton John, Beyonce, Iron Maiden and Guns N' Roses, floated Hipgnosis Songs on the London Stock Exchange in 2018 in a bid to offer investors pure-play songs and music rights.

Read the full report at Reuters.com.