Attorneys representing the UK Gambling Commission accidentally released thousands of documents with confidential information to a former media and pornography mogul who is suing them for £200 million. 

The “unprecedented error” by the UKGC's legal team at Hogan Lovells occurred during pre-trial disclosure. It’s a common legal procedure for two opposing sides to exchange pertinent information with each other. 

However, an individual at the law firm succeeded in sending 4,321 documents with confidential information linked to 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 British billionaire who is a media mogul. Desmond established OK! Magazine has possessed the Daily Express newspaper and the Channel 5 TV station in the UK. He previously published Asian Babes magazine along with hundreds of other specialized titles. 

Disputed Agreement 

Northern & Shell filed a lawsuit against the gambling regulator after it granted the lottery contract to Czech lottery behemoth Sazka, which has now rebranded as Allwyn. 

The lottery represents one of the largest public sector contracts in the UK. Northern & Shell contends that the UKGC's management of the bidding process led to mistakes that negatively affected its score. 

The regulator is seeking a court order for the return of certain files, but it remains uncertain which documents were mistakenly revealed. Hogan Lovells has been working on this since the end of last year. 

In the meantime, attorneys for Northern & Shell are seeking 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 Unsuccessful 

In December of the previous year, Northern & Shell turned down a settlement suggested by the UKGC valued at up to £10 million, according to The Guardian. 

The regulator was keen to resolve the matter since lengthy legal battles have hindered the switch of lottery operations from the former operator, Camelot, to Allwyn, affecting funds generated for charitable causes. 

A court hearing is set for October. The UKGC has cautioned that any compensation granted to Northern & Shell from the case would likewise affect this fund.