Mediation talks to settle a £120 million ($161m) legal claim between Vodafone and 62 former Vodafone franchisees have ended without a resolution.

As reported by The Guardian this week, the case could now go to the high court as the former franchisees seek compensation from the operator.

The former Vodafone franchisees filed a legal claim against the carrier in December over alleged cuts to their commission payments and remuneration.

In total, a group of 62 of 150 Vodafone operators filed the claim against the carrier, which it accused of "unjustly enriching” itself amid the Covid-19 pandemic.

Some of the claimants detailed how the actions of Vodafone had caused them and their families severe financial and personal distress, including reaching the edge of bankruptcy.

The program was set up in 2017 by Vodafone before it was expanded a year later.

However, it was during 2020, that some of the franchisees pinpointed the downfall of the program.

On July 17, 2020, Vodafone invited its 150 franchisees, who operated about 400 stores, to join a video call to tell them that their commissions were being cut. Those on the call noted that Vodafone gave little to no notice and no other explanation beyond the company deciding to take its stores in “a different direction."

In an effort to resolve the dispute, Vodafone held talks with the group but was unable to come to an agreement.

"Vodafone today announced what it hails as a strong set of financial results, with UK service revenue up 5.1 percent - driven, it claims, by business growth and improved customer loyalty. But for many of us, these headline numbers mask a deeper reality: they have come at a significant human and economic cost," said the group in an emailed statement to DCD.

"We, as a group, feel we were not treated as valued partners, but as financial shock absorbers - subjected to irrational and arbitrary business decisions that left many of us with crippling debt and serious mental and physical health impacts."

The group added that it was disappointed Vodafone didn't refer to the mediation talks in its financial earnings announced yesterday.

"Vodafone maintains it acted appropriately. However, that position is difficult to reconcile with the experiences of a large number of us in this group and the reality that legal action is underway," said the group.

"Mediation, which could have offered a route to resolution, has now ended without agreement. Notably, despite the seriousness and scale of the dispute, Vodafone has made no mention of it in today’s financial report and has not listed it as a contingent liability."

Vodafone's chief executive Margherita Della Valle did acknowledge the situation, reports The Guardian, noting that the carrier "remains open to further discussions as the process continues.”

A spokesperson for Vodafone said: “This is a complex commercial dispute between Vodafone UK and some franchise partners, and as we have said from the beginning, we refute the claims. We entered into a mediation process in good faith and are disappointed that this first attempt did not result in a resolution. However, we remain open to further discussions.”

Vodafone is currently in the process of finalizing its planned merger with CK Hutchison's Three in the UK.