Ali Al Faraj has denied claims he plans to sell Portsmouth within six months.
Al Faraj was quoted as saying in the Saudi Arabian media that he knew nothing about football and took over the club 'purely as an investment'.
It was also reported that he had borrowed money to pay overdue wages and was looking for investment.
The story has since been published in some English newspapers but Al Faraj, who only completed his takeover at Fratton Park earlier this month, has moved quickly to dismiss the claims.
His lawyer Mark Jacobs maintains that the quotes have been entirely fabricated as he had not given an interview to any newspaper or website.
Legal proceedings will now begin against the publications that published the alleged quotes and interview.
Pompey believe the quotes are the work of a third party who will also face legal action.
"My client has not made such quotes nor given an interview. It seems to me that this is the work of a third party trying to stir things up," Jacobs told The News.