Newell was sacked on October 18, just over a year into his tenure and a day after Town's 2-0 league defeat at home to Rochdale.
A statement on the club's official website read: "Naturally the club will be defending its position and a defence will be lodged with the courts today (Thursday).
"Mr Newell made positive parting statements on local radio and in news media knowing he had been dismissed due to irretrievable breakdown and events during the evening after the Rochdale game.
"It is disappointing that a differing assertion has now been made to justify Mr Newell's claim and actions on that evening. The club believes the High Court will see through this ridiculous accusation."
Source: Team Talk
Source: Team Talk