FT escapes liability for share plunge in libel dispute

The article is still the subject of a separate libel claim for damages of £37 million for lost business and profits; but the High Court yesterday said that the London firm's £230.5 million claim for the share price drop was "untriable and a waste of the resources of the court."

"The suggested measure of damages is far too uncertain to be acceptable as a legal basis for assessing damages," said Mr Justice Tugendhat.

The case centres on the FT's reporting of allegations made by James Middleweek, a former Collins Stewart analyst. Middleweek produced a document last year which claimed that the firm was guilty of insider dealing and share price manipulation. The Financial Services Authority investigated but announced the closure of its investigation in August this year.

The FT has argued that it did not pass judgment on the allegations but merely reported them. While the remainder of the case is due back in court in April 2005, FT editor Andrew Gowers observed of yesterday's dismissal, "It would be a dark day for journalism and for a free press if publishers were to be held liable for a drop in the share price following publication of an article reporting on company events."