James Carter, founder of a growing London technology start-up who required advice from defamation solicitors in London, instructed Aldwych Legal after false online allegations of fraud and data misuse began to damage his personal and corporate reputation. The matter raised issues of defamation, commercial litigation and business continuity for the company and its investors.
What Happened
Mr Carter discovered a series of social media posts and reviews across multiple platforms alleging fraudulent conduct and unethical use of customer data. The posts were rapidly shared and surfaced prominently in search results, prompting investor enquiries and a pause to a potential partnership in Manchester.
We traced the publications to a former commercial contact, Mark Ellis, who had previously sought to renegotiate an unfavourable supply contract. The publications began shortly after that renegotiation attempt stalled. Customers contacted the business seeking reassurance and some requested refunds or contract pauses.
Legal Issues
- Whether the online statements amounted to defamatory publication at common law and were likely to cause serious harm to reputation (Defamation Act 2013).
- Overlap with business law: protection of goodwill, contractual duties and the impact on investor relations and commercial opportunities.
- Evidential burden to prove falsity, lack of honest belief and absence of any applicable defences (e.g. truth, honest opinion, publication on a matter of public interest).
- Scope of recoverable losses: reputational damage, lost deals, and professional costs to mitigate the publications.
Our Approach
Aldwych Legal immediately archived the offending material and instructed digital-forensic experts to capture timestamps and reach. We reviewed the parties’ contract history to establish motive and the sequence of events.
We issued a Letter of Claim under the relevant pre-action protocols (Defamation and CPR pre-action engagement), setting out defamatory meanings, the falsity of the allegations and the serious harm caused. Parallel takedown notices were sent to platform operators under their terms of use.
We advised Mr Carter on communications to investors and key customers to limit commercial damage while preserving legal options. Negotiations were pursued on a preserved timetable to avoid unnecessary publicity and cost.
Outcome
The defendant accepted he could not substantiate the allegations. A negotiated settlement required removal of all posts, publication of a written apology, and payment of damages and costs to reflect reputational harm and business disruption.
The agreement avoided the expense and publicity of a contested trial, restored confidence among investors and partners, and enabled the business to resume planned commercial activity.
Result / Why It Matters
This case demonstrates Aldwych Legal’s ability to combine defamation expertise with commercial litigation and business law strategy to protect entrepreneurs in the digital age, restoring reputation and preserving commercial value.
