Carter-Ruck may have suffered a humiliating defeat when it attempted to prevent the Guardian and others from reporting on Parliament but it never abandoned its attempt to sue the BBC's Newsnight over a feature on the alleged dumping of toxic waste by Trafigura.

Now Newsnight has apparently removed a video of the investigation, 'Dirty Tricks and Toxic Waste in the Ivory Coast', from its website after legal threats from the oil firm and Carter-Ruck. Bloggers have attempted to evade the gag by posting a YouTube video of the feature and have attacked BBC executives for caving in to Carter-Ruck's assault on free expression.

Other media organisations including the Times and the Independent have previously withdrawn stories about the case but this marks the first time the BBC has removed material on the story.

This latest development confirms the urgent need for the government to call time on London's status as the libel capital of the world.

The Newsnight press office was not responding to calls at the time of publication.