but will not take part in the case.

Dr. Gilbert Beinhocker and Mr Gregory Plunkett allege two counts of slander, and one of libel.

The writ has been filed in the United States District Court in Massachusetts.

And it names The Royal Gazette and the paper's business reporter Mr. David Marchant as the defendants.

The Royal Gazette's lawyer Mr. Kieron Unwin said: "The Massachusetts court has no jurisdiction over us.

"And for that reason we have no intention of taking part in the proceedings.'' Dr. Beinhocker and Mr. Plunkett, from Massachusetts, run communications firm American Russian Cosmos, a US/Russian venture formed in Bermuda last year.

They are also officers and directors in Boston-based Excalibur Ventures, and co-chairmen of Regal International -- a New York Stock Exchange company in the oil field services business.

The slander counts relate to telephone calls made by Mr. Marchant to investors in the plaintiffs' companies.

The libel allegation relates to a story on the plaintiffs and their business activities.

Dr. Beinhocker and Mr. Plunkett want a trial by jury on the counts.