Caterham has hit back after it emerged sacked staff are moving to sue the backmarker team's new management.
Earlier in July, following founder Tony Fernandes' sale of the green-coloured team to mysterious Swiss-Middle Eastern investors, new bosses Colin Kolles and Christijan Albers ousted about 40 of Caterham's Leafield-based workforce.
Caterham announced at the time that it was a "necessary step" for the "future of the team".
But a lawyer representing the workers announced during the Hungarian grand prix weekend that the sackings were "without warning or consultation".
Solicitor Christopher Felton alleged Caterham breached employment laws and contracts, announcing it will "result in significant compensation claims against the team".
But Caterham hit back on Tuesday by saying it read the reports of the legal action "with great concern".
"The team is now taking legal action ... seeking compensation for the damages suffered by the team due to the gross misrepresentation of the facts made by all those concerned," the team said in a media statement.
Caterham said the staff were only ever employed through a third party, insisting it is "wholly untrue" they were not paid in July.