Consulting firm Synergy 360 says it needs to be vindicated with significant damages over four news reports claiming secret advice from then-federal Liberal MP Stuart Robert benefited its clients.
After a parliamentary inquiry, Mr Robert was referred to the National Anti-Corruption Commission in September over claims Synergy channelled money to a company linked to the former frontbencher to win lucrative government work.
Nine unit Fairfax Media reported on the allegations from November 2022 to March 2023 through four Sydney Morning Herald articles.
Synergy and its chief executive David Milo have claimed the reports were defamatory in a NSW Supreme Court lawsuit against Nine, Fairfax and journalists Nick McKenzie and David Crowe.
However, the news broadcaster has denied this allegation and defended the actions of its journalists.
"Nick McKenzie and David Crowe are exemplary journalists and Nine will vigorously defend their reporting," a spokesperson said.
The allegedly defamatory statements include that the firm engaged in corrupt or improper practices by using confidential information given to it in secret by Mr Robert to benefit its clients in securing multimillion-dollar contracts.
Mr Milo claims these statements also defamed him and that the articles falsely reported that he lied to avoid scrutiny by a journalist over his relationship with Mr Robert.
The alleged defamation from the most recent article included reports that Synergy and Mr Milo benefited from a contract with Services Australia worth over $100,000 simply because of their corrupt relationship with a senior federal official.
Mr Robert has previously denied any impropriety, labelling the NACC referral as a "farce" and an example of political payback.
The articles caused reputational damage to Synergy 360 and its chief executive, with Mr Milo also experiencing "hurt, distress and embarrassment", the lawsuit says.
"Within weeks of and in consequence upon the articles being published, (Synergy) lost a number of existing and potential clients, resulting in serious financial loss," the lawsuit reads.
Mr Milo was also unable to find alternative work and had not received a wage since November 2022.
The reports are also alleged to have subjected the firm and its boss to "intense public scrutiny and criticism" through parliamentary and journalistic inquiries.
Damages were required to vindicate and repair Synergy and Mr Milo's reputations, and provide compensation for the distress caused.
The lawsuit also seeks aggravated damages over articles claimed to contain "grave and highly damaging" statements that Nine should have known were untrue.
The broadcaster did not retract the articles or apologise, the consulting firm says.
The matter will next come before the court on April 26.
Mr Robert, who represented the Queensland seat of Fadden, resigned from parliament in May.
