Formula 1 team Caterham have announced that they are taking legal action against a group of former employees for a "gross misrepresentation of facts".

The former workers announced earlier this week that were seeking compensation against the constructors for alleged wrongful dismissal and unpaid wages.

In response, the team said in a statement: "Caterham F1 Team has read with great concern recent reports about a group of individuals who are claiming unfair dismissal from the Formula 1 team following its takeover by new owners.

"The team is now taking legal action against those parties representing the individuals concerned, and each person involved, seeking compensation for the damages suffered by the team due to the gross misrepresentation of the facts made by all those concerned.

"These claims include the statement that they have been released from Caterham F1 Team, this is incorrect. Caterham F1 Team's staff are employed by a company that is a supplier to the company that holds its F1 licence, the licence that allows it to compete in the Formula 1 World Championship. Additionally, the team has read claims its staff were not paid in July, again, this is wholly untrue."

Queens Park Rangers chairman Tony Fernandes sold the team to a Swiss and Middle Eastern consortium earlier this month.