News Corp. agrees to $139 million shareholder settlement

Company will also strengthen its compliance program as part of agreement

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.

Read Bloomberg Businessweek, Reuters and the Wall Street Journal for more information about the agreement.

For more InsideCounsel coverage about the News Corp. scandal, read:

News Corp. executive editor charged with bribery

News Corp. settles with celebs; faces 100 more hacking suits

Hugh Grant, Charlotte Church’s priest sue News Corp.

News Corp. GC named new head of hacking investigation committee

Prosecutors charge former News Corp. exec in hacking scandal

News of the World hacked more than 1,000 peoples’ phones

Blogger/detective sues News Corp.’s Times newspaper for hacking his email

Phone-hacking victims may sue News Corp. in U.S. courts

News Corp. settles hacking claims with 36 victims

Victims get access to evidence in newspaper’s phone hacking scandal

Shareholders accuse News Corp. of corruption and espionage

New details arise in News Corp. phone-hacking scandal

News Corp. shareholders amend complaint to reflect phone-hacking scandal

Ashley Post

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