The Wall Street Journal, published by Dow Jones, wrote the article headlined "The Enron of Britain?" last year in response to an April Fool's Day press release issued by Harrods.
The press release said that Harrods owner Mohammed al Fayed was planning to take the famous store public. The release advised anyone with further questions to contact Loof Lirpa at Harrods. Loof Lirpa, April Fool backwards, is a classic April 1 byline.
In response, The Wall Street Journal published its "The Enron of Britain?" article, which warned that if Harrods went public, investors would be "wise to question its every disclosure".
The department store, according to reports, complained to the Wall Street Journal that the article was "quite scandalous" for comparing Harrods with Enron, the scandal-ridden energy giant, and demanded an apology.
The Wall Street Journal's defence is likely to claim that its article was a humorous response to the initial April Fool's Day release. The case will be heard in the UK after a High Court judge rejected Dow Jones' claims that Britain was not the proper jurisdiction in which to bring a claim.
In a statement Dow Jones, said: "We're disappointed that the judge reached this decision in this case, which has been going on for a year. We believe this illustrates why the courts should take a serious look at this kind of forum shopping by libel plaintiffs."
Harrods owner Al Fayed is no stranger to the libel courts, having appeared before a judge when disgraced former Tory MP Neil Hamilton attempted to sue him, but failed.
The article only appeared in the US, and not the European, edition of the paper and the Wall Street Journal said that only 10 copies were sent to UK subscribers. However, the article was on the WSJ Online where more European readers will have seen it.
The judge in the case, Mr Justice Eady, has encouraged the two sides to arrive at what he called a "sensible compromise" before further legal costs were incurred.
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