A top British law firm that was accused in Parliament of profiting from the harassment of journalists has been slammed by MPs for keeping its cashflow secret using a legal “loophole”.
Carter-Ruck was one of a handful of leading UK law firms to be named and shamed before the UK's foreign affairs committee in March for being “involved in harassment suits against journalists” on behalf of wealthy clients trying to silence newspapers. It was also cited in a parliamentary debate where firms were accused of pursuing an “incredibly profitable niche” that was turning London into the capital of the “global lawfare industry”.
Labour MP Liam Byrne told Parliament earlier this year that law firms were “making millions from the misuse of our courts”, and called for a windfall tax on such businesses’ profits to fund the defence of those under attack. But it is not clear whether Carter-Ruck would be eligible to pay such a tax – as it does not declare profits because of its particular business structure.
