Eighteen young people, aged between nine and 22, claim that chemicals produced by reclamation works at a former British Steel Plant between 1985 and 1997 caused them to be born with defects to their hands, feet and hearts.
Corby Borough Council is accused of negligence over the way waste, steel dust and slag was disposed of to a quarry north of the factory site.
But Chris Mallender, chief executive of Corby Borough Council, denied that the reclamation work caused birth defects.
He said: "We have a great deal of sympathy with every child involved in this litigation as well as with their families. However, for the past five years we have thoroughly investigated every aspect of the claims they are making and we know that there is no link between the reclamation work that was carried out in Corby, over a period of 20 years, and these children's birth defects."
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