Prince Harry and six other prominent individuals are facing a potential legal costs bill of up to £34.5 million following their unsuccessful privacy lawsuit against the publisher of the Daily Mail. High Court judge Mr Justice Nicklin imposed an exceptional order for legal costs over the failed case, which had alleged unlawful information-gathering by Associated Newspapers Limited (ANL).

The seven claimants, who also include Sir Elton John, his husband David Furnish, former Liberal Democrat deputy leader Sir Simon Hughes, racial justice campaigner Baroness Lawrence, and actresses Sadie Frost and Liz Hurley, must pay an initial £9.54 million by Friday of next week to ANL. The judge criticized the claimants' presentation of their case as unreasonable to a high degree.

On July 7, Mr Justice Nicklin dismissed the claims, which ANL had denied. The ruling means the newspaper group could now seek to recover up to £34.5 million, the amount it stated it spent defending itself. This could leave the duke and the other claimants with a bill approaching £18 million, after accounting for insurance coverage of up to £16.2 million for ANL's costs.

The judge stated he had decided not to impose a ceiling on ANL's recoverable costs, finding that doing so would be too broad and risk unfairness. He also ruled that ANL's costs should be determined on an indemnity basis, which is more favorable to the publisher in recovering expenses.

Mr Justice Nicklin highlighted that not a single allegation of serious wrongdoing was voluntarily withdrawn by the group of seven claimants during the proceedings. He emphasized that serious allegations of criminality or grave impropriety should not be left unresolved, and if a party no longer has a proper evidential basis for such claims, they should be withdrawn clearly.

The judge described the claimants' failure to withdraw allegations as "not ordinary forensic judgment" and "not a proper or disciplined way to deal with serious allegations." He concluded that this approach was "unreasonable to a high degree."

In a statement, ANL called the ruling a "devastating critique" of an attempt to damage the newspaper and the reputations of its journalists and executives. The claimants have until October 2 to attempt to launch an appeal against the decision.

The outcome of this case adds significant financial pressure on the claimants, particularly Prince Harry, who has been vocal about his and his family's desire for privacy. The timing of the ruling also comes shortly after announcements regarding the potential return of Prince Harry and Meghan to the UK.