Four newspaper groups today agreed to pay substantial damages to a Birmingham man they falsely claimed was suspected of being involved in a plot to blow up transatlantic passenger aircraft using "liquid bombs".
A series of articles in six different newspapers claimed that Abdul Rauf, the proprietor of a bakery and cake distribution business in Birmingham, was suspected of funding or of having some other involvement in the alleged plot in August last year.
Some of the articles also suggested that Mr Rauf had been arrested in connection with the alleged plots, either in Pakistan or in England, his solicitor, Isabel Hudson, told the high court in London today.
The newspapers involved were three Trinity Mirror-owned local titles - the Birmingham Mail, the Birmingham Post and the Sunday Mercury - and the Guardian, Daily Mail and the Times.
A number of newspapers had also repeated the allegations on their websites, Ms Hudson told the court.
"These allegations were untrue," he said. "As the defendant newspapers all now acknowledge, Mr Rauf has never been arrested nor detained by the police on suspicion of involvement in the 'liquid bombs' plot, or for that matter any other alleged terrorist plots or activities, and there are no grounds for suspecting any such involvement.
"The articles caused Mr Rauf significant embarrassment and distress at a time of particularly heightened sensitivity in relations within the Muslim community.
"In recognition of the falsity of the allegations made against Mr Rauf, the defendant newspapers have already published full apologies and have agreed to join in the reading of this statement in open court.
"Further, they have agreed to pay Mr Rauf substantial libel damages, as well as his legal costs."
The newspapers' solicitor, Julian Darrall, added: "The defendants apologise to Mr Rauf for the distress and embarrassment he has suffered as a result of the publication of the false allegations contained in the articles complained of."