Wixen Music Publishing Files $1.6 Billion Lawsuit Against Spotify

Wixen Music Publishing Files $1.6 Billion Lawsuit Against Spotify

Wixen Music Publishing Files $1.6 Billion Lawsuit Against Spotify

Meanwhile, Spotify is the target of a lawsuit seeking upwards of $1.6 billion in damages from Wixen Music Publishing, which handles titles by artists including Tom Petty, Neil Young, Steely Dan's Donald Fagen and Stevie Nicks. By pursuing a direct listing, Spotify can skirt underwriting fees typically required for an IPO, though the move could hurt its shares because underwriters won't be evaluating or buoying the price.

Axios previously reported some details, citing unnamed sources, including that Spotify filed IPO documents in December for a public offering, citing unnamed sources.

If the company lists on the New York Stock Exchange, as expected, it would be the first to do so with a direct listing.

Global News has reached out to Spotify for further comment.

With 60 million paying customers and additional advertising revenue, Spotify are not thought to be looking to raise capital, but are instead attempting a unique trading system known as "direct listing". But Spotify failed to properly obtain the equivalent rights for the compositions. They claim that the company doesn't have the right license or compensation to Wixen to stream the songs.

The lawsuit was filed in California last Friday, and alleges that Spotify has been using "thousands of songs" without the correct license. The legal action from Wixen actually comes on the heels of a class-action lawsuit from Melissa Ferrick and David Lowery, musicians who alleged that Spotify knowingly distributed unlicensed music and sought $150 million.

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