Sentebale Pauses Defamation Lawsuit Against Prince Harry

Financial pressures and concerns about potential legal liabilities have prompted Sentebale, the charity co-founded by Prince Harry, to pause its defamation lawsuit against the Duke of Sussex and former trustee Mark Dyer. The reported suspension follows a nearly 20% decline in annual income and comes as the organization addresses governance concerns raised by the Charity Commission in England and Wales.

According to The Telegraph, cited by Town & Country and Civil Society, both parties agreed to extend deadlines for key court filings. The arrangement temporarily suspends progress in the case and delays publication of the full particulars of the claim.

Sentebale filed its claim in the High Court of England and Wales in 2026, alleging that Harry and Dyer had conducted a coordinated campaign that damaged the charity and its leadership. Harry has said he intends to contest the proceedings, potentially exposing Sentebale to substantial legal expenses and a damages award if the case does not succeed.

The charity's financial statements show that total income fell from approximately £2.5 million in 2024 to £2.024 million in 2025. Income from events dropped particularly sharply, from £715,000 to £70,000, with the end of Harry's annual charity polo tournaments cited by The Telegraph as a contributing factor.

Sentebale recorded a deficit of £277,000 for 2025, increasing to £317,000 after accounting for £40,000 in exchange differences from translating overseas entities. Its unrestricted general reserves moved from a £232,000 surplus in 2024 to a £10,000 deficit in 2025, while total reserves stood at £250,000 at the end of the year.

The financial statements also disclose that a third-party funder has agreed to cover the charity's legal fees and adverse costs. The funder provided a full indemnity and confirmed its ability to meet those commitments, according to the accounts.

Sentebale's trustees said they would continue reviewing the litigation and remained open to resolving the dispute outside court. They also stated that they did not expect the proceedings to create a financial obligation for the charity during the review period.

The legal dispute developed against the backdrop of an earlier regulatory investigation. Sentebale raised governance concerns with the Charity Commission in February 2025, prompting the regulator to open a case on April 3, 2025. The investigation concluded on August 6, 2025, with a regulatory action plan identifying weaknesses in the charity's governance.

In its financial statements, Sentebale described 2025 as a difficult year that demanded substantial organizational attention during a period of transition and regulatory scrutiny. The charity identified funding disruptions, pressure on public services, reputational risks and restructuring demands among the challenges affecting its operations.

The organization said it responded by adapting program delivery, strengthening oversight, improving financial controls and clarifying leadership responsibilities. Its priorities for 2026 include diversifying funding, renewing the board, improving delegated authority, increasing organizational capacity and rebuilding its reputation.

Carmel Gaillard, Sentebale's global executive director, said the regulatory findings provided a foundation for governance improvements.

"We took that scrutiny seriously and used it to improve how the organisation is governed and managed," Gaillard wrote in the accounts.

She also highlighted lessons from the charity's financial and operational difficulties, including the importance of diversified funding, appropriate staffing and measuring the actual outcomes of its programs.

Sentebale was founded in 2006 by Harry and Prince Seeiso of Lesotho to support children and young people affected by HIV in Lesotho and Botswana. Harry resigned as patron in March 2025 alongside Dyer and the other trustees following a public dispute with board chair Sophie Chandauka.