THE FINANCIAL TIMES yesterday agreed to pay £300,000 to Collins Stewart to settle the broker’s £37 million libel claim.
The newspaper will also publish an apology to Collins Stewart on the front of its Companies and Markets section, in column space normally attracting about £10,000 in advertising revenue, and cover the broker’s £2.2 million legal bill.
Collins Stewart’s claim related to four FT articles in August 2003 detailing allegations about the broker’s business methods by James Middleweek, a former analyst with the firm.
James Libson, a libel lawyer with Mischon de Reya who did not act for either party, said after the settlement: “There’s only one winner in all of this, and it’s Collins Stewart.”
The dispute was one of the bitterest rows between a City firm and a newspaper. It was resolved yesterday when both sides announced a compromise in the High Court, having begun discussions at the start of the year.
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Terry Smith, the chief executive of Collins Stewart, who is renowned for his aggressive style, said: “I and Collins Stewart Tullett wish the editorial team at the FT well.”
Lionel Barber, appointed Editor of the FT after Andrew Gowers’s ousting in November, said: “This agreement enables both sides to put this matter behind us and move on.” Neither Mr Smith nor Mr Barber was present in court.
Collins Stewart waged a 2½-year battle against the paper in its quest to obtain damages and an apology.
The Financial Times also celebrated a victory when a judge in 2004 struck out Collins Stewart’s £230.5 million claim for special damages for a drop in its share price that it blamed on one of the FT articles.
The FT is not expected to initiate any disciplinary proceedings or review of editorial procedure. Their insurers will cover the paper’s £2 million legal bill, as well as the payout to Collins Stewart.
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James Middleweek
In articles on Monday and yesterday, we incorrectly referred to James Middleweek being sued for libel by Collins Stewart and his paying damages and costs to them. In fact, in October 2004 Mr Middleweek settled his employment claims against Collins Stewart without any payment being made by either side. We acknowledge that Collins Stewart did not sue Mr Middleweek and apologise for saying that he paid damages and costs to them.