F1: Caterham to take legal action against former staff

The Caterham F1 team were sold by owner Tony Fernandes to a Swiss and Middle Eastern consortium

Caterham are to take legal action against a number of former employees who are claiming unfair dismissal.

More than 40 ex-staff members were laid off from earlier this month as part of cost cuts by new owners.

A statement released on behalf of former employees said they were seeking compensation.

However, Caterham have cited a "gross misrepresentation of the facts" in the legal claim against the team.

"Caterham F1 Team has read with great concern recent reports about a group of individuals who are claiming unfair dismissal from the Formula 1 team following its takeover by new owners," read a statement from Caterham, who were taken over at the start of the month by a Swiss-Middle Eastern consortium.

"The team is now taking legal action against those parties representing the individuals concerned, and each person involved, seeking compensation for the damages suffered by the team due to the gross misrepresentation of the facts made by all those concerned.

"A formal request for the withdrawal of the relevant press statement issued on 28 July has been made by Caterham F1 Team, and the team will vigorously pursue its action against all those concerned."

Caterham, formerly Lotus Racing, have yet to score a single point in the team's four seasons in F1

Caterham F1 is now a separate entity from Caterham Cars, which produces lightweight sportscars, and two technology companies, Caterham Technologies and Caterham Composites.

Those three companies are still owned by the grand prix team's former owner Tony Fernandes, who also owns Air Asia, the Tune Hotel group and London's Queens Park Rangers Football Club.