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Caterham, ex-employees to pursue legal action against each other

Jul 29, 2014, 1:30 PM EDT

After a group of laid-off former employees from Caterham announced their intent to pursue legal action against the team’s new owners, Caterham has released a statement saying that they’re going to push for a lawsuit against the ex-employees over “gross misrepresentation of the facts.”

Here’s the full statement that was released from Leafield today:

“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.

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.

These claims include the statement that they have been released from Caterham F1 Team – this is incorrect. Caterham F1 Team’s staff are employed by a company that is a supplier to the company that holds its F1 licence, the licence that allows it to compete in the Formula 1 World Championship.

Additionally, the team has read claims that its staff were not paid in July – again, this is wholly untrue. Every individual currently employed by Caterham F1 Team was paid their July salary in full on 25th July, one week before it is formally due on the last day of the month, in this case 31st July.

A formal request for the withdrawal of the relevant press statement issued on 28th July has been made by Caterham F1 Team and the team will vigorously pursue its action against all those concerned. However, it will not allow its core focus to be distracted from achieving tenth place in the 2014 Formula 1 World Championship, and building for the 2015 campaign and beyond.”

At least 40 members of the Caterham team were reportedly dropped after a consortium of Swiss and Middle-Eastern investors bought the team from Tony Fernandes.

Caterham’s statement comes one day after the ex-employees issued their own release that declared “the summary dismissal of employees from Caterham was done without warning or consultation and will result in significant compensation claims against the team.”

The ex-employees also alleged that Caterham went back on promises to pay them in July and implored the FIA to “fully investigate the F1 team’s conduct and the circumstances in relation to its recent change of ownership.”

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