Around 50 taxi drivers and tour guides are to launch legal action after delegates attending a British intelligence-linked cyber security event in Belfast this week were warned not to take black cab tours 'because they are run by the IRA'.
Solicitors say defamation proceedings are to be launched after the false claims were made in a briefing paper ahead of a conference organised by a body linked to the British government's secret General Communications Headquarters (GCHQ).
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One of the most high profile British intelligence agencies, GCHQ is responsible for electronic and other forms of surveillance.
The untrue claims about the taxi industry were made in a security briefing document ahead of this week's CyberUK 2023 conference, which will be held in Belfast on Wednesday and Thursday.
The gathering is being organised by the National Cyber Security Centre (NCSC) and is being billed as a "flagship cyber event".
Among its roles the NCSC, which is part of GCHQ, helps protect from cyber attacks and improves internet security.
It has been reported that a contractor, Bray Leino Events, which is helping with this week's conference, advised its staff not to take black cab tours of Belfast's famous wall murals claiming they are run by the IRA.
Staff were also instructed not to walk through housing estates near the city centre, along with the claim that some districts do not welcome English accents.
It was later reported that in a statement Bray Leino Events acknowledged that "statements made in an internal document for event support staff have caused offence" while an apology was made and the document withdrawn.
The NCSC also distanced itself from the offending document saying it was sent in error by a contractor and contains "significant factual inaccuracies".
Solicitor Michael Brentnall, of Brentnall Legal, said he has been instructed to take legal action on behalf of several clients including one taxi firm with multiple drivers.
"Whilst the comments have been made on behalf of the National Cyber Security Centre (NCSC), which is a part of GCHQ, these comments are in our view plainly defamatory, utterly inexcusable, gratutious and a throwback to attitudes of a bygone day," he said.
"Accordingly, any action will be directed at GCHQ, of which NCSC is a part."
Darragh Mackin, Of Phoenix Law, represents almost 50 people who are taking legal action
"This is the most egregious attack on the character of an industry in recent times," he said.
"We have now initiated the process of seeking redress for our clients, their reputations, and the wider industry, to hold those to account and make them put their money where their mouth is."
GCHQ was contacted.