Prince Harry's defamation case with charity Sentebale is paused amid fears of 'devastating' costs Sentebale's defamation claim against Prince Harry has been paused due to concerns over the potential costs. The charity claims Harry coordinated an 'adverse media campaign' against it, causing 'operational disruption and reputational harm'. However, Sentebale's income dropped by 20% after launching the claim, and they may struggle to cover legal costs if they lose. The charity has received £2 million in income, down from £2.5 million in 2024. A defamation claim made by Sentebale against the charity's co-founder Prince Harry has been paused amid concerns over potentially devastating legal costs. The Duke of Sussex was sued over allegations he co-ordinated an adverse media campaign against the charity causing operational disruption and reputational harm. But Sentebale faced a 20 per cent drop in income months after launching the claim and it has now stalled amid fears a loss could see the charity fold to cover legal bills. Harry is prepared to go to a trial in court to clear his name which could result in Sentebale being forced to make a payout and be liable for the costs of both sides.Sentebale income drops as legal costs loomSentebale's latest accounts show it received about 2 million in income in 2025 down from 2.5 million in 2024. Income from events dropped from 715 000 in 2024 to 70 000 last year reflecting the end of Harry's polo tournaments for the charity. But Sentebale did manage to pull in 342 000 in donations in 2025 which was up 50 000 on the previous year.Prince Harry and Sentebale's chair Dr Sophie Chandauka at an event in Miami in April 2024 Dr Chandauka with the Sussexes at the Royal Salute Polo Challenge in Miami in April 2024 In April online court filings revealed the duke was a defendant in a libel or slander claim alongside his childhood mentor Mark Dyer a former trustee of Sentebale. Harry later responded to the allegations in a statement issued on behalf of him and Mr Dyer saying they categorically reject these offensive and damaging claims.At the time Sentebale's board of trustees and executive director said in a statement uploaded to the charity's website that it was seeking the court's protection. They added that the charity had been deeply moved by the generosity of donors who have stood firm alongside them and Sentebale's work is increasingly critical.Founders step down amid trustee dispute rowIn March last year founders Harry and Prince Seeiso stepped down as the charity's patrons in support of a group of trustees who resigned after a dispute with board of trustees chairwoman Dr Sophie Chandauka. The row also followed an awkward exchange between Dr Chandauka and Harry's wife Meghan Markle at a Miami charity polo event in aid of Sentebale in April 2024 where the duchess asked her to move away from Harry.Following Harry's resignation Dr Chandauka went on television and accused him of harassment and bullying at scale of playing the victim card and observed that the number-one risk for this organisation was the toxicity of its lead patron's brand. The duke denied the claims but the Charity Commission subsequently published a report into the episode criticising all sides for making the fallout public with interviews and statements.Prince Harry and Prince Seeiso of Lesotho at an event in Maseru Lesotho in October 2024 Harry holds a young child during a visit to a children's centre in Bute-Bute Lesotho in 2014 The commission criticised all parties in the dispute for allowing it to play out publicly and described how all trustees contributed to a missed opportunity to resolve the issues that led to the serious disagreement which risked undermining public trust in charities generally. The regulator which cannot investigate individual allegations of bullying found no evidence of systemic bullying or harassment including misogyny or misogynoir at the charity but acknowledged the strong perception of ill treatment felt by some involved.Charity works in Botswana and Lesotho for youthA source said in August last year that Harry had been left emotionally devastated by the events after 19 years of working with the charity. Sentebale works in Botswana and Lesotho supporting the health and wellbeing of young people especially those with HIV and Aids. Harry and Prince Seeiso co-founded the charity in honour of the duke's late mother Princess Diana who died in 1997. Harry's representative declined to comment today.The Daily Mail has also contacted Sentebale for comment. Reports of the case being put on hold were first revealed by the Telegraph.