15 February 2008
Morrisons to sue OFT for libel
Supermarket chain Morrisons is taking legal action against the Office of Fair Trading (OFT), accusing it of libel.
The firm alleges that the OFT damaged its reputation by including it in a list of supermarkets that the organisation identified as having fixed milk prices.
Such damages, Morrisons says, were a "direct, intended and foreseeable consequence of the publication" of the statement.
According to the Financial Times, Morrisons has declined to comment on the issue, while the OFT stated there was "an ongoing litigation case" on which it could not comment.
The action could result in a multi-million pound damages claim.
Tesco, which was also accused of involvement in the price fixing, has said it too will fight the OFT's ruling.
Originally a Bradford market stall, Morrisons has become one of the UK's major supermarket chains, currently operating over 370 stores and employing 114,000 members of staff.