The Financial Services Authority has since closed its investigation into Collins Stewart after finding no foul play. Collins Stewart had always denied the claims made by James Middleweek, who once worked as a former small companies analyst at the broker.
The article in the FT was "fairly and accurately reflected," according to Andrew Gowers, its editor.
"The information contained in this public document was information that the FT was fully entitled to report in a responsible and balanced way. The FT was by no means alone in doing so," Gower said.
"We will continue to contest this case and entirely reject Collins Stewart's unprecedented special damages claim."
Terry Smith, the chief executive of Collins Stewart, said, "Our view was always that the allegations were spurious. Now they can be seen in that light. We look forward to seeing Mr Middleweek and others in court."
The FT has issued an application to strike out 拢230.5m of Collins Stewart's claim, which is the amount by which its share price fell after the article was printed.
Middleweek, who is also fighting an unfair dismissal claim, has complained to the police that his car has been bugged and telephones tampered with. However, the City of London police have decided not to take action.
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