Labour accused of trying to delay lawsuit against former employees over fears of election clash
The Labour Party has been accused of attempting to delay a high-profile trial against five of its former employees because the case could prove to be “embarrassing” ahead of the next general election.
The party is currently engaged in a protracted legal wrangle with five former employees whom it has accused of leaking a controversial report into how antisemitism complaints were handled under the leadership of Jeremy Corbyn.
It can also be revealed that to date, Labour has spent almost £1.5m on the ongoing legal action, which is currently going through the High Court.
Court documents seen by Sky News also reveal that Labour expects to spend a further £868,000, which could take the party’s own legal costs to the region of £2.4m.
It has previously been reported that the Labour Party could face a legal bill of between £3m and £4m if it loses the case and taking into account the combined costs for both sides.
Party sources have recently expressed concerns that such a costly legal case could dent the party’s election fund, with one member of the party’s ruling body, the National Executive Committee (NEC), telling The Guardian in August that costs were “spiralling out of control”.
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The source said Labour should be “questioning this monumental waste of members’ and affiliates’ money pursuing what appears to be a pointless political vendetta”.
“Candidates will be up in arms that we are gambling with the party finances needed to win their seats,” they added. “We need to have a laser focus on getting the Tories out.”
However, in September it was revealed that the party had secured a record level of funding between April and June this year, totalling almost £7.5m – just shy of the Tories £10m.
The latest figures show the party has received £11.9m in donations so far this year.
The revelations come just days before senior Labour figures and activists gather in Liverpool for the party’s annual conference and when it enjoys a near 20-point lead over the Conservatives in the polls.
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‘Jeremy Corbyn will not stand for Labour’
The court action against the five ex-employees – including Mr Corbyn’s former chief of staff Karie Murphy and his former director of communications Seumas Milne – was triggered after an internal report into the party’s handling of antisemitism complaints was leaked to the media in 2020.
The 860-page report contained a number of damaging claims, including that factional hostility towards Mr Corbyn contributed to “a litany of mistakes” that hindered the effective handling of complaints.
The investigation, which was completed in the last month of Mr Corbyn’s leadership, claimed to have found “no evidence” of antisemitism complaints being treated differently to other forms of complaint, or of current or former staff being “motivated by antisemitic intent”.
The report also contained thousands of private WhatsApp communications between former senior party officials that were often derogatory about Labour staff, members, and Corbyn-supporting MPs.
The party has accused the five former employees, which also include Georgie Robertson, Laura Murray and Harry Hayball, of leaking the confidential report to undermine the party, which they deny.
At a recent hearing in the High Court, the party requested that the trial be postponed until after the next general election, which is expected to be held in either the spring or autumn of next year and cannot be held any later than January 2025.
The five claim that the party’s wish to postpone the case until February next year at the earliest “is in fact heavily influenced by a desire to avoid, during an election period, litigation which will bring the Labour Party into the public eye in ways it might find embarrassing or uncomfortable, but which it has chosen to bring”.
Witness statements by Mr Hayball and Ms Robertson that were read out in court were critical of attempts to delay the trial, with the latter arguing that the legal proceedings had already put her life “on hold”.
“I am very anxious that the longer I am out of work, and therefore the bigger the gap in my CV, the harder it will be to attain employment, especially in a competitive field, even once my name has been cleared of the Labour Party’s serious allegations in these proceedings,” her witness statement read.
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In response, the Labour Party’s lawyers argued that the five could obtain “a major tactical advantage” if the trial date coincided with the general election.
“It would be unfair and wrong in principle to place the defendant [the Labour Party] in a position where it was required to prepare for and conduct a trial in this very complex and weighty litigation… whilst also having to perform its vital constitutional role of contesting a general election,” they said.
“It cannot effectively do both of these things at the same time.”
A Labour spokesperson said: “The party has conducted a wide-ranging and appropriately thorough investigation following the leak and is confident of the case it has presented to the court.”
GD Culture Group (GDC), a Nasdaq-listed holding company focused on livestreaming, e-commerce and artificial intelligence-powered digital human technology, plans to raise up to $300 million for a cryptocurrency treasury reserve.
In a May 12 statement, GDC and its subsidiary, AI Catalysis, announced entering into a common stock purchase agreement with a British Virgin Islands limited liability company to sell up to $300 million of its common stock.
The proceeds from the stock sale will be used to fund the firm’s crypto treasury, which will include purchases of Bitcoin (BTC) and the Official Trump (TRUMP) token.
“Under this initiative, and subject to certain limitations, GDC intends to allocate a significant portion of the proceeds from any share sales under the facility to the acquisition, long-term holding, and integration of crypto assets into its core treasury operations,” the company said in the announcement.
GDC described the strategy as a move to align with the broader “decentralization transformation.”
Founded in 2016, GDC is a micro-cap company with a current $34 million market capitalization, according to Nasdaq data.
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GDC’s chairman and CEO, Xiaojian Wang, said the initiative builds on the company’s strengths in digital technologies and positions it for a blockchain-powered industrial shift.
“GDC’s adoption of crypto assets as treasury reserve holdings is a deliberate strategy that reflects both current industry trends and our unique strengths in digital technologies and the livestreaming e-commerce ecosystem,” Wang said.
The stock offering was announced over a month after the firm received a noncompliance warning from Nasdaq related to its stockholders’ equity. The notice indicated that the firm reported stockholders’ equity of only $2,643, well below the minimum requirement of $2.5 million.
The firm was given until May 4 to submit a plan to comply with the listing requirements. If accepted by Nasdaq, the compliance plan will allow up to 180 days from the notification period to comply with the requirements.
The Nevada-based company joins a small but growing group of public firms that are allocating part of their balance sheets to crypto assets.
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Trump token dinner planned for top holders
GDC’s announcement coincides with an upcoming high-profile event tied to the Trump token project. The 25 largest holders of TRUMP tokens are set to attend a private dinner at the White House on May 22.
However, the TRUMP memecoin project said in a May 12 X post that it has stopped considering additional purchases for the dinner and that the attendees had been notified to apply for background checks.
According to data provided on the project’s leaderboard, the top 220 wallets held more than 13.7 million tokens as of May 12, worth about $174 million at the time of publication.
Some US lawmakers have criticized the dinner. Republican Senator Cynthia Lummis reportedly said that the idea of the US president offering exclusive access for people willing to pay “gives [her] pause.”
Crypto regulation experts also fear that the Trump family’s crypto endeavors may trigger more regulatory scrutiny by the US Securities and Exchange Commission, as politically affiliated memecoins introduce a new challenge for crypto legislation.
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A 21-year-old man has been arrested over a series of arson attacks, police have said, after a fire at a house owned by Prime Minister Sir Keir Starmer.
The suspect was arrested in the early hours of Tuesday on suspicion of arson with intent to endanger life, according to the Metropolitan Police.
He remains in custody.
Emergency services were called to fires at the doors of two homes in north London within 24 hours of each other – one just after 1.35am on Monday in Kentish Town and the other on Sunday in Islington. Both properties are linked to Sir Keir.
Police are investigating links to several fires, which they are treating as suspicious. Pic: LNP
Detectives were also checking a vehicle fire last Thursday on the same street as the Kentish Town property to see whether it is connected.
Part of the area was cordoned off as police and London Fire Brigade (LFB) investigators examined the scene.
Neighbours described hearing a loud bang and said police officers were looking for a projectile.
Emergency services were deployed to the scene in Kentish Town, north London, on Monday. Pic: PA
Pic: PA
The prime minister is understood to still own the home, which was damaged by fire on Monday, but nobody was hurt. Pictures showed scorching at the entrance to the property.
Sir Keir used to live there before he and his family moved into 10 Downing Street after Labour won last year’s general election. It is believed the property is being rented out.
In the early hours of Sunday, firefighters dealt with a small fire at the front door of a house converted into flats in nearby Islington, which is also linked to the prime minister.
Counter-terror police are leading the investigation. Pic: LNP
In a statement, police said: “As a precaution and due to the property having previous connections with a high-profile public figure, officers from the Met’s Counter Terrorism Command are leading the investigation into this fire.
“Enquiries are ongoing to establish what caused it. All three fires are being treated as suspicious at this time, and enquiries remain ongoing.”
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The prime minister’s official spokesman said: “I can only say that the prime minister thanks the emergency services for their work and it is subject to a live investigation. So I can’t comment any further.”
Kemi Badenoch has condemned the suspected arson attacks.
Writing on X, the Conservative leader said: “This is a shocking incident. My thoughts are with the prime minister and his family. No one should face these sorts of threats, let alone people in public service.
“It’s an attack on our democracy and must never be tolerated.”
Shadow justice secretary Robert Jenrick told Sky News on Tuesday: “It’s important that the prime minister and anyone in public life has their family, their homes, protected.
“It is absolutely wrong, disgraceful, for any individual to take the kind of action that we saw against the prime minister’s home.”
Arizona Governor Katie Hobbs vetoed two key cryptocurrency-related bills that aimed to expand the state’s involvement in digital assets while signing a strict regulatory measure targeting Bitcoin ATMs.
On May 12, Hobbs rejected Senate Bill 1373, which sought to establish a Digital Assets Strategic Reserve Fund. The fund would have allowed Arizona to hold crypto assets obtained through seizures or legislative allocations.
“Current volatility in cryptocurrency markets does not make a prudent fit for general fund dollars,” she stated in her veto letter. “I have already signed legislation this session which allows the state to utilize cryptocurrency without placing general fund dollars at risk,” she added.
That decision followed her veto of Senate Bill 1025 — the more ambitious “Arizona Strategic Bitcoin Reserve Act” — on May 3. It would have authorized up to 10% of the state’s treasury and retirement funds to be invested in Bitcoin and other digital assets.
According to data from bitcoinlaws.io, 26 US states have introduced strategic crypto reserve bills, with 18 of them currently active.
Hobbs also vetoed Senate Bill 1024, which would have permitted state agencies to accept cryptocurrency payments for taxes, fines and fees via approved service providers.
Although the proposal attempted to shield the state from direct exposure to price volatility, Hobbs said it still introduced “too much risk.”
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Hobbs approves Bitcoin ATM bill
On May 12, Hobbs approved House Bill 2387, which introduces new consumer protection rules for cryptocurrency kiosk (ATM) operators, aiming to reduce fraud and improve transparency.
The bill mandates that kiosks display clear, multilingual warnings about common crypto scams and require users to acknowledge these risks before completing transactions. Operators must also provide detailed receipts that include transaction data, contact information, fees and refund policies.
Furthermore, the bill caps transactions at $2,000 per day for new customers and $10,500 per day for returning users after 10 days. Kiosk providers must also offer 24/7 toll-free customer service and post the number visibly on each machine.
Under the bill, if a new user is tricked into sending crypto under false pretenses and reports it with proof within 30 days, they are entitled to a full refund, including fees.
According to CoinATMRadar, there are currently 20 active Bitcoin ATMs in Arizona.
Notably, Hobbs has not entirely closed the door on digital assets. On Wednesday, she signed House Bill 2749, which updates Arizona’s unclaimed property laws to include digital assets.
The legislation allows the state to retain unclaimed cryptocurrencies in their original form rather than liquidating them into fiat currency.
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