The Financial Timesnewspaper is in court today trying to strike out a £230 million sterling special damages claim from a libel case brought against it by investment bank Collins Stewart Tullet.
Lawyers representing the Financial Timeswill argue in the High Court today for the removal of the claim, which represents the fall in the stock market value of Collins Stewart following the reports in the FTcovering allegations made against the bank.
Collins Stewart is suing the Financial Times, owned by media group Pearson, for its coverage last year of allegations made against the firm by former employee Mr James Middleweek.
The case has sparked a media debate about whether it could expose newspapers to possible legal action if their reports lead to share price falls.
The financial regulator investigated the claims on which the FTreports were based and cleared Collins Stewart in August. The group's libel action against the FTis not expected to come to court until next year.
In addition to the claim relating to its share price, the investment bank is seeking £20 million damages for loss of business following the FTreports.
Headed by Mr Terry Smith, Collins Stewart specialises in corporate finance and is also a major player in bond and derivatives broking.