Hipgnosis Songs Fund Limited (LSE:SONG) said it has appointed solicitors to review legal claims against it and founder Merck Mercuriadis, along with his company, Hipgnosis Songs Management (HSM).
Issuing a statement following media reports about the allegations, the company said it intends to seek an indemnity from Mercuriadis and HSM against any liability that it might incur resulting from their actions.
HSM, which is majority-owned by investment giant Blackstone, is investment adviser to the SONG trust.
Mercuriades, HSM and SONG were served with High Court proceedings last year by Hipgnosis Music Limited for allegedly diverting business opportunities to the trust and HSM.
Mercuriades is still listed on Companies House as a director of Hipgnosis Music Limited, which appointed a liquidator in 2021 but has recently secured litigation funding and is seeking to recover "a substantial but as yet unquantified sum under the claim", SONG said.
SONG's new board has appointed Kastle Solicitors, specialists in commercial litigation.