Hipgnosis Songs Fund Overstated Revenue, Earnings & Its Stakes in Music Catalogs, Says New Report

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Hipgnosis Songs Fund inflated earnings, song catalog stakes and more, says a report on the fund with stakes in catalogs by Justin Bieber and more.

Songs Fund, the troubled publicly traded music royalty company that owns full or partial rights to song catalogs from the, issued a damning report Thursday compiled by a third party that details missteps the fund and its investment advisor made leading to a

In a statement announcing the report, the fund’s board said it is exploring “all options for the future of the company,” and that it will release its strategic review and proposals by April 26. “Throughout the life of the company, HSM has worked constructively, and in good faith, with the company’s board and other advisers to deliver the best outcome for the company’s shareholders,” the company continued. “Each adviser was recruited by the company’s board to advise on their specific area of expertise and with clear areas of responsibility.”

Multiple reports from the fund presented that it had 100% “interest ownership” in acquired catalogs, which suggests ownership and control. “In fact, a material number of catalogs represent only a fractional, non-controlling income stream in the compositions without any copyright ownership,” the report reads.

 

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