The government is mulling taking legal action against media outlets which had misreported on the search for MH370.

"The cabinet has instructed the attorney general to compile evidence and advise," acting Transport Minister Hishammuddin Hussein said on Twitter today.

He was referring to a Malay Mail report which quotes him as saying that the government "should sue" media outlets for "false reports".

“We have been compiling all the false reports since Day 1. When the time is right, the government should sue them,” he was quoted as saying.

In the report, Hishammuddin also said that the government has been transparent throughout the search for the plane, which disappeared 25 days ago on Mar 8.

“The Malaysian government has nothing to hide and I believe the truth will prevail,” he reportedly said.

The report had also made reference to the Daily Mail report claiming that pilot Zaharie Ahmad Shah's ( left ) family told investigators he was moody weeks before the incident.

His daughter Aishah has since denied the report.

The Malay Mail also claimed that “inaccurate” reports had also “contributed to the mounting tension of the Chinese nationals”.

The news comes as the US courts threw out a petition purportedly by a firm representing families of an Indonesian and Chinese passengers seeking information from Malaysia Airlines and aircraft manufacturer Boeing, in what is believed to be a prelude to a lawsuit.

The immediate family members of Indonesian passenger Firman Chandra Siregar, however, has denied initiating legal action and said no authority was given for anyone to act on their behalf.