Sir Philip Green and Arcadia drop legal case against The Daily Telegraph

Arcadia has accused the Telegraph of conducting a campaign to "knowingly facilitate the breach" of confidentiality agreements.

Sir Philip Green
Image: Sir Philip Green has dropped the action against The Daily Telegraph
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Sir Philip Green has dropped his legal claim against The Daily Telegraph after the newspaper reported allegations of sexual and racial harassment against him.

Court of Appeal lawyers had temporarily stopped the newspaper naming Sir Philip or revealing the confidential information relating to allegations made by five employees.

But former Cabinet minister Lord Hain named the Topshop owner in the House of Lords, taking advantage of parliamentary privilege.

The naming, two days after the Telegraph originally reported the injunction, led to widespread reporting of the allegations.

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Lord Hain said he had no regrets over naming Sir Philip

Arcadia and Sir Philip pursued legal action but announced the end of them today.

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In a statement, Arcadia said: "After careful reflection, Arcadia and Sir Philip have therefore reluctantly concluded that it is pointless to continue with the litigation which has already been undermined by the deliberate and irresponsible actions of Lord Peter Hain, the paid consultant of the Telegraph's lawyers Gordon Dadds, and risks causing further distress to the Arcadia's employees.

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"Consequently, Arcadia and Sir Philip will be seeking the court's permission to discontinue these proceedings on Monday."

Despite dropping the case, Arcadia accused The Daily Telegraph of conducting a campaign to "knowingly facilitate the breach" of confidentiality agreements, exposing those who signed up to them.

The company said the newspaper caused "untold disruption" to 20,000 staff members.

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Sir Philip: 'You're really starting to annoy me'

The statement added: "The Telegraph has repeatedly contacted and harassed staff and former staff of Arcadia and BHS. Its reporters have doorstepped many individuals, often at night, causing distress and concern to their families, even as recently as last weekend.

"Arcadia and Sir Philip want to protect those staff and former staff from further intrusive approaches. A complaint about this behaviour has been made to IPSO (the Independent Press Standards Organisation)."

Lord Hain is believed to be under investigation by the House of Lords Commissioner for Standards over his naming of Sir Philip in the chamber.

At the time, the Labour peer defended the move, calling it his "duty" to use privilege. He said he had done so after being contacted by someone "intimately involved" in the case.