News Corp. is paying up big time for its misdeeds.
In July 2011, journalists at News Corp.’s News of the World tabloid stood accused of hacking into the phone messages of various U.K. citizens, including celebrities, a young murder victim and political figures. Since then, the company has faced an onslaught of litigation and has settled some of the claims.
Yesterday, News Corp. agreed to pay $139 million to settle shareholder suits claiming the board failed to investigate the company’s phone-hacking scandal. The agreement also resolves claims related to the company’s acquisition of the television production company Shine Group Ltd. The shareholders claimed the Shine acquisition only benefitted Shine’s founder, the daughter of News Corp. CEO Rupert Murdoch.
The agreement, which is subject to court approval, requires the company to strengthen its global compliance program and corporate governance. The proposed settlement is the largest ever in a derivative suit in the Delaware Chancery Court.
For more InsideCounsel coverage about the News Corp. scandal, read: