'Financial Times' to pay damages to stockbroker

The Financial Times today agreed to settle a dispute with a UK broker and pay it substantial damages and legal costs.

The Financial Timestoday agreed to settle a dispute with a UK broker and pay it substantial damages and legal costs.

Collins Stewart Tullett had sued the FTover its 2003 coverage of allegations by former equity analyst James Middleweek, who accused the brokerage of regulatory breaches in a document he sent to the British financial watchdog.

Collins Stewart's legal counsel, Rod Christie-Miller, reading from a statement, said: " The Financial Timesis happy to clarify that it did not ever endorse Mr Middleweek's allegations and apologises for any impression to the contrary that may unintentionally have been given."

"The Financial Timeshas agreed to pay substantial damages and legal costs to Collins Stewart and to publish an apology to that effect on the front page of the 'Companies and Markets' section of its newspaper," Christie-Miller said.

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The broker initially sought compensation for declines in its stock price following the FTarticles, but the amount was reduced to £37 million (€54 million) after a judge threw out a £230.5 million  (€336 million)special damages claim in 2004.

The Financial Services Authority conducted an investigation into Mr Middleweek's allegation, which closed in August 2004, with the regulator saying it would take no further action. The FTis owned by UK publisher Pearson.