The News of the World has been dealt a devastating blow in the High Court in London today, when its leading witness, the prostitute who alleged that Max Mosley's S&M session was Nazi-themed, withdrew. The woman, known a 'Woman E', who sold her story to the British tabloid, having tipped it off about the session in the first place, is said to have reached an "extreme mental and emotional state", though this was probably not helped by the fact that the Rupert Murdoch owned newspaper only paid her £12,000 for her story as opposed to the £25,000 originally agreed.

Earlier this morning, Mark Warby, QC for the newspaper, told a packed Court 13: "This morning at 7.50 I received information which has later been elaborated which leads those instructing me and my clients to take the view that her emotional and mental state is such that it would not be fair or responsible or reasonable to give evidence. It is most regrettable."

It was then revealed that Woman E's husband (Mr E?), formerly an intelligence office with MI5, but who has since resigned from the service amidst claims he was involved in the sting against Mosley, will also not now give evidence.

"We cannot, since I am not calling Woman E, continue to maintain the strand of the case in relation to a Nazi theme that says that instructions were given to Woman E by Woman A which originated from the claimant, and we don't," said Warby, who then added: "I am not abandoning the proposition that there was in fact a Nazi theme."

Despite the claims of the other four women involved, including the organizer of the session (Woman A) that there was never any suggestion of a Nazi theme to the orgy, the News of the World maintains that everything about the session was built around a Nazi fantasy scenario. This is Something which Mosley has always denied, and the main reason for this landmark legal case.

The case has now been adjourned, with closing speeches to take place on Monday.