UK Gambling Commission’s ‘Unprecedented Blunder’ in ex-Porn Baron’s £200M Lawsuit
Attorneys representing the UK Gambling Commission accidentally released thousands of documents with confidential information to a former media and adult industry tycoon who is suing them for £200 million.
The “unprecedented mistake” by UKGC lawyers Hogan Lovells occurred during pre-trial disclosure. It is a common legal practice for two opposing sides to exchange pertinent information with each other.
However, an individual at the law firm successfully sent 4,321 documents with confidential information regarding the UK’s £80 billion (US$101 billion) National Lottery bid to the plaintiff in the lawsuit, Northern & Shell.
Northern & Shell is a firm owned by Richard Desmond, a wealthy British media magnate. Desmond established OK! Magazine owns the Daily Express newspaper and the Channel 5 TV station in the UK. He previously published Asian Babes magazine along with hundreds of other similar niche titles.
Contentious Agreement
Northern & Shell filed a lawsuit against the gambling regulator after the agency granted the lottery contract to Czech lottery behemoth Sazka, which is now known as Allwyn.
The lottery ranks among the largest public sector contracts in the UK. Northern & Shell contends that the UKGC's management of the bidding procedure led to mistakes that negatively affected its score.
The regulatory body seeks a court ruling for the return of specific files, yet it remains uncertain which documents were mistakenly revealed. Hogan Lovells has been seeking to understand this since the end of last year.
In the meantime, attorneys for Northern & Shell seek approval to submit a revised complaint that would incorporate certain documents as evidence in their case.
"This is not a case where, in the main, [the documents] have simply gone through a first level review, it has in fact been reviewed by the most senior lawyers in this case,” said Sa’ad Hossain KC, representing Northern & Shell, in a hearing on the matter this week. “The reality is we are entitled to assume the documents have been disclosed to us not by mistake,” he argued.
Tamara Oppenheimer KC, speaking on behalf of the UKGC, informed the hearing that all involved are anticipated to “act reasonably and truthfully.”
“Inadvertent disclosure should not be an opportunity for the receiving party to take advantage,” she added. “It would be unfair and inappropriate if [the plaintiff] were permitted to take advantage of those obvious errors by bolstering its case through the use of the Commission’s privileged documents.”
Mediation Does Not Succeed
In December of last year, Northern & Shell declined a settlement suggested by the UKGC that amounted to as much as £10 million, according to The Guardian.
The regulator was keen to reach a settlement since extended legal battles have delayed the switch of lottery operations from the former operator, Camelot, to Allwyn, affecting funds generated for charitable purposes.
A trial is set for October. The UKGC has cautioned that any compensation granted to Northern & Shell due to the case would likewise affect this fund.
