A Bradford businessman is suing a national newspaper for hundreds of thousands of pounds over an article he says has exposed his company to public scandal.

Mohammed Shokat, director of Premier Accident Management UK (Yorkshire), has issued a libel writ following a story in the Financial Mail on Sunday last March, which investigated the company's business.

The article, headlined How the car crash gangs net millions', followed an investigation by the paper the previous year into insurance frauds involving staged accidents.

Mr Shokat, his brother Mohammed Sageer, and their company, whose main office is near to Toller Lane roundabout, are suing publishers Associated Newspapers, managing editor John Wellington and reporter Andrew Foxwell for a minimum of £300,000.

Their solicitor, Luke Patel, a partner in the commercial litigation department of Leeds-based Blacks solicitors, confirmed proceedings had been issued and transferred to the Royal Courts of Justice in London.

Mr Shokat, who is married with two young children, said he had been trying to prove his innocence from day one.

He said: "I have done nothing wrong. They have just targeted and tried to make an example of my company to outline a problem out there, but they have picked the wrong company."

The newspaper article claimed an insurance company was looking into personal injury claims, submitted on behalf of Premier clients, and it sent two people into the company's main office, posing as accident victims wanting to claim compensation.

Mr Shokat said: "We don't encourage people to have accidents. We do stringent checks before processing a claim. We collect as much evidence as we can to verify a claim and if it is genuine it is then verified by solicitors and it is up to them if they accept the claim."

A spokesman for the Royal Courts of Justice confirmed Mr Shokat had issued a writ for libel against Associated Newspapers.

A spokesman for the Mail on Sunday said: "The matter is in the hands of our solicitors and it is being defended."

e-mail: steve.wright@bradford.newsquest.co.uk