Prince Harry Gets Major Relief as Sentebale Lawsuit Paused Amid Financial Struggles
The legal action currently stands stalled due to concerns that a loss could lead to the charity's closure from legal fees.
Prince Harry had a major falling out with the charity he co-founded in honor of his late mother, Princess Diana. The Duke resigned as patron of the charity Sentebale after a breakdown in his relationship with its chair, Sophie Chandauka, last year. The charity had initiated a defamation lawsuit against him and Mark Dyer, his longtime friend and former trustee, at the London High Court. However, the latest reports indicate a promising development that could provide relief to the Duke.
The High Court case by Sentebale against Harry has been paused due to financial challenges, The Telegraph reported. Sentebale had sued the Duke, claiming a “co-ordinated adverse media campaign” caused them operational disruption and reputational harm. The legal action currently stands stalled due to concerns that a loss could lead to the charity's closure from legal fees. The charity experienced a 20 percent drop in income from the time the lawsuit was filed.
Harry, on his part, is determined to go to trial and clear his name, which may make Sentebale responsible for both parties' costs and potential payouts. An extension has been agreed for filing the acknowledgment of service and defense, keeping the particulars of claim confidential.
The charity's accounts reveal an income of just over $2.6 million (£2 million) in 2025, down from approximately $3.3 million (£2.5 million) in 2024. The annual report cites “lower event income, reduced gifts in kind and lower donations from trusts and foundations.” Overall income fell from $3.1 million (£2.34 million) in 2024 to $2.7 million (£2 million) in 2025. Net assets decreased from $755,000 (£567,000) to $333,000 (£250,000), with general reserves showing a deficit of $13,000 (£10,000). The decline in event income may also be partially attributed to the conclusion of profitable polo matches that the Duke organized to support the cause.
Harry and Markle's spokesperson had condemned the lawsuit, stating that, as co-founders of Sentebale, they strongly deny the offensive claims and criticize the use of charitable funds for legal action against its founders instead of benefiting the intended communities. The Charity Commission concluded an investigation in August 2025, noting shared blame and criticizing the public nature of the dispute that negatively impacted the charity's reputation. Chief executive David Holdsworth emphasized that the issues faced by Sentebale threatened its accomplishments and the welfare of its beneficiaries.
