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Jeremy Corbyn accused of unleashing wave of legal claims that could bankrupt Labour

Jeremy Corbyn
Jeremy Corbyn

Supporters of Sir Keir Starmer have accused Jeremy Corbyn of unleashing a wave of legal claims against Labour that threaten to leave the party at risk of bankruptcy.

After the party on Wednesday agreed to pay out an estimated £370,000 in fees and damages to anti-Semitism whistleblowers, it has now emerged that Labour is  facing at least 40 further civil claims.

Many of the claims, which are being handled by two law firms, relate to a leaked internal report on the party’s handling of anti-Semitism, and revolve around allegations of data privacy breaches, misuse of private information and libel.

Among those taking action is Lord McNicol, a former Labour general secretary who stepped down during Mr Corbyn’s leadership.

The report, which was compiled during the last few months of Mr Corbyn’s leadership, included allegations over the conduct of former Labour Party officials and named complainants in anti-Semitism cases.

It was leaked shortly after Sir Keir's election victory in April, although there is no suggestion Mr Corbyn had any involvement in this.

The controversy is now the subject of an independent inquiry led by Martin Forde QC, which in turn is expected to add considerably to Labour’s mounting legal costs.

The Daily Telegraph understands that senior Labour officials have warned the potential payouts could amount to several million pounds, although suggestions it could top £8 million in a worst-case scenario are disputed.

It is also understood that the party is not protected by legal insurance, meaning a slew of legal actions could leave Sir Keir facing an existential crisis.

Hitting out at Mr Corbyn, a Labour frontbencher said: “We’re paying the price with money that could be used serving the public, we’re paying the price by losing control of councils such as Brighton, because of the councillors that have left the party under the stain of anti-Semitism.

“The question now is how deep is the hole the Labour Party has been dug into by Corbyn and his acolytes.”

A second shadow cabinet minister added: “This is the Corbyn legacy. People should be angry.”

It comes just 24 hours after Mr Corbyn claimed the decision by Labour to settle and apologise to seven former members of staff and the BBC journalist John Ware over smears made against them under his watch had been a “political” rather than a legal one.

He added that decision was “disappointing” and risked giving “credibility to misleading and inaccurate allegations about action taken to tackle anti-Semitism in the Labour Party in recent years.”

His lack of contrition has infuriated Jewish campaigners and prompted Mr Ware and several of the whistleblowers to instruct the libel lawyer Mark Lewis to pursue claims against the former Labour leader.

Supporters of Mr Corbyn have now launched an online crowdfunder to help pay for any legal costs, with the pot standing at almost £40,000.

Separately, Labour sources have dismissed his suggestion that the party should have fought the legal actions, adding that losing at trial could have cost between £1.5 and £2 million.

Speaking to BBC Newsnight on Wednesday, Mr Lewis, a partner at Patron Law, confirmed that he had been instructed by 32 people to take action against the party over the leaked report.

Mr Lewis confirmed that Lord McNicol was one of his clients, adding that he had been named in the report and “is blamed for things that simply didn’t happen.”

“There are 32 people who have instructed me to take action,” he continued "Their actions are in respect to data breaches, misuse of private information, libels — It's like an exam question for a libel lawyer to look through them and see how many claims you can find.

“There are many other people who are named in the report, they come under different categories: people who work for the party, people who were in the party in political positions.”

Mr Corbyn was approached for comment.