(Sharecast News) - Hipgnosis Songs Fund said in an update on Monday that it was looking for indemnity from its founder amid a legal battle with Hipgnosis Music.
The music royalty investor said the lawsuit involved claims from Hipgnosis Music, a company Merck Mercuriadis was a director of, alleging an unlawful diversion of business opportunities to Hipgnosis Songs Fund and its investment advisor, Hipgnosis Songs Management.
It was looking to recover a substantial but unspecified sum, with Hipgnosis Music securing litigation funding.
The company had disclosed the lawsuit in November, and said it had appointed Kastle Solicitors independently to review the allegations.
It said it was seeking indemnity from Mercuriadis and Hipgnosis Songs Management, as any liability would be attributed to their conduct and knowledge.
The news came days after Merck Mercuriadis stepped down as chief executive officer of Hipgnosis Songs Management.
Ben Katovsky, the manager's current chief operating officer, would take over the role, while Mercuriadis would assume the position of chairman and lead the company's engagement with songwriters and artists.
At 0801 GMT, shares in Hipgnosis Songs Fund were down 1.07% at 64.6p.
Reporting by Josh White for Sharecast.com.
Hipgnosis Song. (SONG)