Barry Manilow, the celebrated singer-songwriter, has filed a lawsuit against Hipgnosis Songs Fund and Stiletto Entertainment seeking $1.5 million in unpaid bonus funds. The suit, filed in U.S. District Court in California, alleges breach of contract, fraud, and misrepresentation related to the sale of Manilow’s music catalog to Hipgnosis in 2020.
According to the lawsuit, part of the acquisition deal included bonuses based on performance metrics, which Manilow claims were not honored. Hipgnosis, which purchased the catalog for $7.5 million with additional payments contingent on income increases, is accused of failing to meet these obligations. The lawsuit details that Manilow’s catalog met the required conditions for the additional payments, which amounted to $750,000 each year if certain income thresholds were met.
The legal action also criticizes Hipgnosis and its founder Merck Mercuriadis for failing to deliver on promises related to album reissues and media licensing. Manilow’s team alleges that Mercuriadis lacked the authority he claimed and that the promised marketing and promotion never materialized.
This lawsuit follows a similar legal action taken by Hipgnosis against Manilow last month, which also cites breach of contract. Hipgnosis, which led a high-profile surge in music catalog acquisitions, has struggled with a significant drop in stock value and internal turmoil, culminating in Mercuriadis stepping down earlier this year. The company was subsequently acquired by Blackstone-owned Lyra Bidco Limited.
