Daily Mail loses £4m libel case to casino operator

by Daniel Farey-Jones, Brand Republic 19-Mar-08, 13:05

LONDON - The Daily Mail is to make a £4m payout after abandoning its defence against a libel action brought by casino operator Las Vegas Sands and its chairman, US billionaire Sheldon Adelson.

Adelson brought the case after the Mail published a May 2005 article, written by David Jones, that linked him and his company with Malcolm Glazer's takeover of Manchester United FC and made allegations about his personal life.

The Mail and Jones today withdrew their allegations and apologised publicly for the damage and distress caused by the article.

According to Schillings, the London law firm that represents the claimants, the costs and damages awarded by Mr Justice Eady put the claim among the UK's most expensive libel actions.

Schillings' statement said the article centred on discussions between Las Vegas Sands, Manchester United and Trafford Council over proposals for a casino adjacent to United's Old Trafford stadium.

"Despite the fact that the negotiations had been conducted openly with Manchester United and a press release sent out on May 9 2005, the Mail reported that Adelson and Las Vegas Sands had colluded with Glazer in his bid to gain control of the club, held secret talks before the takeover and attempted to conceal their involvement in the complex," Schillings said.

Gideon Benaim, a partner at Schillings, told the High Court that the article depicted Adelson and his company as "engaging in cut-throat, ruthless and despicable business practices... and suggested that they routinely and corruptly bought political favour".

The article went on to make "serious and unpleasant allegations" about Adelson's personal life. Benaim told the court that none of the allegations were put to Adelson before publication.

Adelson, who has donated the money to the Royal Marsden cancer hospital in London, said: "The Daily Mail's article was a wholly unwarranted attack on me and our business. It was based on a lie -- the false allegation that I had secret meetings with Malcolm Glazer, a man I have never met... I was determined that the Daily Mail should be held accountable... I am delighted that we have been fully vindicated and that the Mail has recognised that the allegations it made are utterly false."

Las Vegas Sands owns The Venetian and The Palazzo hotel casinos in Las Vegas, as well as the city's Sands Expo and Convention Centre. It is also developing the Cotai Strip, a development of resort-casino properties in Macao.

The Mail's parent company Daily Mail & General Trust was unavailable to comment at the time of publication.