Founder of Hipgnosis Songs Fund accuses ex-partner over failed business

The now dissolved Hipgnosis Music received funds that were proceeds of fraud, Merck Mercuriadis alleges in court documents

The founder of a music company that holds the rights to songs by Blondie and Justin Bieber has accused his former business partner of using the proceeds of fraud to fund their collapsed venture, court documents show.

Merck Mercuriadis is the founder of Hipgnosis Songs Fund (HSF), a FTSE 250 company that buys music rights in the hope of profiting from streaming revenues, and which is now set to be taken over by private equity investor Blackstone in a 1.3bn deal.