Barry Manilow is suing Hipgnosis Songs Fund (HSF) in federal court in California seeking $1.5 million in unpaid bonuses related to the music rights company's acquisition of his catalog four years ago.
The “Mandy” singer's lawsuit, along with his management company Hastings, Clayton & Tucker Inc, or Stiletto Entertainment, follows a similar lawsuit filed by HSF earlier this month in London, alleging breach of contract regarding bonus payments. News of the California case was first reported by the Financial Times.
Before Blackstone's $1.6 billion acquisition of HSF and its award-winning portfolio that includes songs by Shakira, the Red Hot Chili Peppers, Manilow and others, shareholders of the publicly traded music rights company had revolted over, among other things, late disclosure of approximately $40 million. unpaid bonus checks owed to artists;
This liability on the fund's balance sheet combined with the suspension of investor dividends and accounting scandals eventually led investors to give a vote of no confidence in the fund's board – a move that resulted in the founder of Hipgnosis Merck Mercuriadis separating from the fund and the investment adviser and board of directors of the fund that was selling the portfolio to Blackstone.
Hipgnosis acquired 100% of Manilow's worldwide recording rights (excluding SoundExchange rights), which include 917 songs, for an initial purchase price of $7.5 million in 2020. The deal included some of the 81-year-old singer's biggest hits, including “Mandy,” “I write the songs”, “Looks like we made it”, “I can't smile without you” and “Copacabana (in the Copa).”
In the 14-page complaint filed Wednesday (Aug. 28), Manilow and Stiletto Entertainment say HSF agreed to make two additional payments of $750,000 each if HSF's catalog earnings hit certain benchmarks. Manilow and his management company claim that these benchmarks have been met, but that HSF has engaged in “a protracted game of cat and mouse to avoid this obligation.”
HSF representatives did not immediately respond to a request for comment.
