London: The British newspaper arm of Rupert Murdoch’s News Corp. looks set to settle at great expense a string of legal claims after admitting wide-scale phone hacking that was both known about and concealed by senior management.
Murdoch’s News International had for years claimed that the hacking of voicemails to generate stories was the work of a single “rogue” reporter who went to jail for the crime in 2007.
The News Corp. logo is displayed on the company’s headquarters in New York. Bloomberg.
However, under a wave of damning evidence last year it finally admitted that the problem was widespread, sparking a scandal that has rocked the company, the British press, police and the political establishment.
In a statement that could further damage the firm’s reputation, lawyers for victims who have reached settlements said on Thursday their agreements were based on News Group Newspapers, publisher of some of News International’s newspapers, acknowledging that senior management were at fault.
News International declined to comment on the statement.
“News Group has agreed to compensation being assessed on the basis that senior employees and directors of NGN knew about the wrongdoing and sought to conceal it by deliberately deceiving investigators and destroying evidence,” the statement said.
In a London court packed with journalists and lawyers, judge Geoffrey Vos went through each case and heard the grounds for the settlement. At the end of each statement a lawyer for News Corp confirmed the details and offered “sincere apologies”.
Settlements announced in court generally ranged from around £30,000 ($46,000) to £60,000, while some were not revealed. Actor Jude Law accepted over £100,000 after he was physically surveilled abroad as well as in Britain.
The admissions may also lift some immediate pressure off the group, as it will prevent lawyers from poring over further details in open court, but it could lead to increased scrutiny of James Murdoch, who has been heavily criticized for his handling of the situation. Murdoch’s son James was not in charge of News International at the time of the hacking but has been accused of leading a cover-up by the company. He has denied all knowledge of the scale of the problem and blamed many of those around him for the failings.
The lawyers issued the statement on Thursday as they prepared to tell a judge in a London court that many of the most high-profile victims—who include sports stars, actors and politicians—were ready to settle their claims. The move means that all cases could eventually be settled.
Reuters
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