A firm leading claims against the Ministry of Defence has played down reports that the cases could collapse because the business has run out of money.

The Times reported last week that a class action brought by Hilary Meredith Solicitors on behalf of 450 former service personnel could collapse because the firm ‘faces bankruptcy’. It suggested the business was £6.7m in debt and had days to find the money to pay staff or administrators would be called in.

In a statement, the firm told the Gazette the nine-year legal action over the controversial anti-malarial drug mefloquine (marketed under the brand name Lariam) had been ‘gruelling’ and had placed the firm under a ‘serious financial toll’ but that reports of the case being at risk were misplaced. ‘As a small law firm we have had to borrow millions of pounds to fund this David and Goliath type action,’ said Hilary Meredith Solicitors. ‘Thankfully, in the past few days our bank and litigation funders have confirmed their ongoing financial support, securing the future of this litigation and our firm.’

The firm stated that while 10 lead cases have been listed for trial at the High Court next March, the parties are now ‘close’ to reaching a settlement, and it remains proud to represent armed forces service personnel, veterans and their families.

The litigation has continued for so long despite a report by the European Medicines Agency in 2014 finding evidence of a link between mefloqiuine and neuropsychiatric effects such as hallucinations and nightmares. The firm argues that users experience shocking side-effects from the drug which are linked to violence, homicide and suicide. Thousands of troops deployed in combat operations abroad are thought to have been given the drug between 2007 and 2015.

In 2016, the House of Commons defence select committee recommended that all anti-malaria drugs be supplied only after a face-to-face health risk assessment performed by a trained healthcare professional.

Last year it emerged that the MoD spent £20m on legal costs in 2021/22 defending compensation claims. The costs were revealed after a freedom of information request from Hilary Meredith Solicitors. The department said it takes the health and safety of all its personnel very seriously and has a robust governance structure to ensure this is managed effectively.

The north west firm has carved out a reputation for representing serving and retired members of the armed forces making compensation claims. Its accounts for 2022 show that the business was running with net liabilities of £73,000 after amounts owed to creditors within a year rose from £8.6m to £10m.

 

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