Hipgnosis Songs Fund seeks indemnity against potential liabilities from ongoing lawsuit

'Substantial but as yet unquantified sum'

Valeria Martinez
clock • 2 min read

Hipgnosis Songs Fund (SONG) has appointed a legal firm to seek an indemnity from founder Merck Mercuriadis and his investment manager Hipgnosis Song Management (HSM) against any liabilities arising from the High Court claim brought by his former business partners.

In a stock exchange notice today (5 February), the board of SONG noted it had recently appointed Kastle Solicitors, independently of the other defendants, to review the claim, which was previously disclosed by the trust on 23 November and as part of it 2023 annual report. The lawsuit has been brought by Quantuma, the liquidators of Hipgnosis Music Limited (HML), a company Mercuriadis co-founded and remains a director of, according to Companies House filings. It alleges he diverted the business of HML into his own operation, losing its investors millions of dollars in potential revenue.  ...

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