Skip to content
Monday 10 August 2026London --:--Frankfurt --:--Zurich --:--
NewslettersSearchEN · DE
MorningWire

European business, markets and politics

FTSE 100
10,862.50
-0.35%
DAX
26,323.88
+0.02%
CAC 40
8,726.03
+0.13%
STOXX 50
6,535.62
+0.18%
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
More
GermanyFranceBankingAIEnergyFintechPropertyCapital Markets
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Economy
  • Technology
  • Politics
  • Opinion
  • DE
Thursday 09 July 2026 6:00 am  |  Updated:  Wednesday 08 July 2026 3:44 pm

Hacking scandal? Inside Prince Harry’s costly legal battle over privacy

By: Maria Ward-Brennan

Professional Services Editor

Add as a preferred source on Google
Associated Newspapers, which is owned by Lord Rothermere's Daily Mail and General (DMG Media), said losses ballooned from £699,000 in 2022 to £44.5m in the year ended 1 October 2023
Legal Costs Soar as Phone Hacking Scandal Draws to a Close

The phone hacking scandal, which first emerged 15 years ago, has cost the owners of Britain’s most prominent newspapers over a billion pounds in legal damages, keeping law firms and the courts busy for more than a decade, writes Maria Ward-Brennan.

The phone hacking saga returned to the headlines in spectacular style this week after a group of high-profile figures, including Prince Harry, lost a lengthy legal battle against Associated Newspapers, the owners of the Daily Mail and Mail on Sunday. The judge rejected all of the claimants’ arguments and dismissed the case in its entirety.

Ahead of the trial, the High Court intervened to manage spiralling costs, approving legal budgets of about £4m per side for this phase of litigation alone. However, according to the owners of the Daily Mail, the case, which was in court for 11 weeks earlier this year, ultimately cost more than £50m.

Former Daily Mail editor Paul Dacre lambasted the case against Associated as “a conspiracy…to destroy a paper.”

With this victory, the publisher will now seek to recover its legal costs. According to the Association of Costs Lawyers (ACL), unless the parties settle on costs, the court will determine what the publisher can reclaim. “A party can argue before a specialist costs judge that they should receive more than the budgeted sum, but they will have to show a ‘good reason’ for this. It is a high bar.”

But as Andrew Fremlin-Key, Partner at law firm Withers, noted, despite the win for the publisher, “financially, there is no real winner in this trial”.

Over the past decade, the hacking scandal has played out in the High Court, with prominent figures such as actor Hugh Grant and Prince Harry undergoing multiple rounds of hearings against the publishers.

Owing to the high profile of Prince Harry’s barrister, David Sherborne of 5RB, the claimant law firms typically received less press attention. Firms such as Sheridans Solicitors, Thomson Heath Jenkins, and Addleshaw Goddard have represented over 2,000 claimants over the years, while the publishers relied on Clifford Chance, RPC, and Baker McKenzie for their defence.

But with Justice Nicklin dismissing the case against Associated Newspapers this week, it seems this long-running saga may finally be drawing to a close.

The unsuccessful case against Associated was the latest in a long-running legal affair dating back 15 years. The original ‘hacking scandal’ resulted in thousands of court documents, hundreds of hours in the High Court, an enormous public inquiry, prison sentences, the end of the News of the World, and astronomical bills. From rulings to settlements to legal fees, the total financial fallout for publishers has now exceeded a billion pounds.

Read more

Prince Harry defeated in phone hacking legal battle against Daily Mail publisher

Prince Harry, Duke of Sussex (Photo by Yui Mok - WPA Pool/Getty Images)

News Group Newspapers (NGN), the UK publishing arm of Rupert Murdoch’s empire, and the former publisher of the News of the World, is facing the bulk of this bill. The scandal began at the now-defunct News of the World, although NGN continues to publish The Sun. As a result, the publisher has accrued over £1.2bn in legal damages since 2011, according to The Guardian’s analysis of NGN’s Companies House accounts.

Meanwhile, Mirror Group Newspapers (MGN), publisher of the Daily Mirror, Sunday Mirror, and Sunday People, was also deeply embroiled in litigation.

Between court victories for claimants and settlements out of court, plus a judge’s finding that MGN, owned by Reach plc, hacked Prince Harry’s phone, the publisher has paid out over £100m in costs. Prince Harry alone was awarded £140,600 in compensation in December 2023. He then settled the remainder of his claims against the group, securing an additional “substantial” payout and an interim payment of £400,000 to cover his legal bills.

Legal costs come as sector faces financial woes

These legal bills coincided with a time of profound disruption to media business models.

Associated Newspapers, owned by Lord Rothermere, saw a 1 per cent dip in year-on-year revenue to £1.09bn; however, operating profits dropped 25 per cent to £81.2m. Reach plc’s full-year print revenues stood at £388.1m, down nearly 5 per cent from the previous financial year. News UK recorded a significant revenue decline of nearly 12 per cent, with revenue standing at £641m, down from £727m in the previous cycle.

The financial strains caused by declining ad revenues, shifts in social media algorithms, and structural changes across the media industry have forced all major publishers to implement deep staff cuts, including Reach, which axed around 450 full-time jobs in late 2023.

The latest court ruling was undoubtedly a win for Associated, but overall the phone hacking saga has left a lasting mark on the British press and its finances.

As the legal battles subside, publishers are left to reckon with the costly legal bill of a scandal that shook the industry to its core.

Eyes on the Law is a weekly column online and in the newspaper focused on the legal sector.

Read more

On This Day in 1865: Lord Northcliffe, godfather of the tabloids, was born

Alfred Harmsworth Lord Northcliffe portrait; influential British publisher and media mogul from the early 20th century.

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Business
  • Legal
  • Lawsuit
  • Media

People & Organisations

  • Daily Mail
  • Daily Mirror
  • Eyes on the Law
  • High Court
  • Litigation
  • News UK
  • phone hacking
  • Prince Harry
  • Reach
  • Rupert Murdoch
  • The Sun

Trending Articles

  • Nottingham Forest owner Marinakis sues Crystal Palace for defamation

  • Back to basics: Sainsbury’s gradual retreat from the British high street

  • Thames Water faces fresh threat to survival after pensions regulation breach

  • Hargreaves Lansdown orders staff back to office

  • As it happened: Intel, Arm shares slide; Oil climbs higher

More from Morning Wire

  • Prince Harry defeated in phone hacking legal battle against Daily Mail publisher

    Lawsuit
    Prince Harry, Duke of Sussex (Photo by Yui Mok - WPA Pool/Getty Images)
  • On This Day in 1865: Lord Northcliffe, godfather of the tabloids, was born

    Opinion
    Alfred Harmsworth Lord Northcliffe portrait; influential British publisher and media mogul from the early 20th century.
  • Richard Desmond puts £1bn Westferry development up for sale

    Property
    Richard Desmond's legal battle against Gambling Commission opened at High Court. Photo by Peter Macdiarmid/Getty Images
  • Close Brothers shares fall as motor finance scandal threatens worst returns in Europe

    Banking
    Close Brothers has upped its motor finance provisions.
  • City watchdog suspends parts of £9bn motor finance scheme after industry backlash

    Banking
    The FCA has appointed Liam Coleman interim chair of the FOS.
  • Offshore legal giant Mourant eyes expansion with private equity boost

    Prof Services
    Mont Orgueil Castle overlooking Gorey Harbour with boats and waterfront buildings in Jersey, Channel Islands.
  • Battersea Power Station misreporting claims scrutinised by accounting watchdog

    Accountancy
    Breaking news scene with reporters, cameras, and microphones at a bustling press conference, spotlight on speaker podium
  • Meet the top lawyer challenging Gianni Infantino’s Fifa power play

    Law
    Gianni Infantino, FIFA President, waves to a crowd with a blue and gold patterned background
MorningWire

Independent European business, markets and political news for decision-makers.

Morning Briefing

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Business

  • Markets
  • Banking
  • Technology
  • Energy
  • Property
  • Fintech

Editorial

  • Opinion
  • Editorial Policy
  • Corrections
  • Contact

Company

  • About Morning Wire
  • Privacy Policy
  • Terms of Use
  • Cookie Policy
© 2026 Morning Wire Ltd · Published by Morning Wire Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
Privacy · Terms · Cookies · Facebook