LONDON (AFP) - A judge at the London High Court struck out the bulk of a record libel damages claim of 240 million pounds (345 million euros, 434 million dollars) against the Financial Times by stockbroker Collins Stewart Tullet.
Judge Justice Tugendhat ruled that the part of the claim relating to 230.5 million pounds of special damages could not proceed.
This figure was based on estimates by the broker of the impact on its market capitalisation of an article which appeared in the FT in August 2003 headed "Reputations on the Line at Collins Stewart".
The article covered allegations of regulatory breaches at the stockbroker made by an analyst at Collins Stewart, James Middleweek, in a document to regulators.
"I have decided that the claimants cannot win on this part of their claim, and that a trial of that issue would be a waste of time," the judge said.
He said that the remaining issues of damages, including substantial claims for loss of business and other financial loss, should be tried by a judge sitting alone, though only if the stockbroker first won a trial on liability before a judge and jury.
The FT, part of the Pearson media group, is vigorously defending the claim.
In a statement FT editor Andrew Gowers welcomed the ruling, describing the claims as "manifest nonsense and untenable in law".
He added. "It would be a very dark day for journalism and for a free press if publishers were to be held liable for a drop in share price following publication of an article reporting on company events."
A spokesman for Collins Stewart Tullet said the decision would "have no bearing on our determination to pursue our claim".
He said that there remained a general damages claim of 37 million pounds which represented the quantifiable amount of lost business and profits from the article.