A group of News Corp. shareholders have filed suit against News Corp., the media conglomerate, over a phone-hacking scandal at its now-closed News of the World tabloid in London. The lawsuit accuses News Corp. of large-scale governance failures surrounding the British hacking case. News of the World employees have been accused of hacking into the phone of a missing 13-year-old girl, who was later found murdered, as well as those of other crime victims.
The lawsuit was filed in Delaware Chancery Court by shareholders led by Amalgamated Bank. Several municipal and union pension funds joined in the lawsuit as Plaintiffs. The shareholders are also challenging the acquisition by News Corp. of Shine Group Ltd., founded by the daughter of News Corp. Chairman and CEO Rupert Murdoch. The suit claims that Rupert Murdoch “habitually uses News Corp. to enrich himself and his family members at the Company’s and its public shareholders’ expense.”
This lawsuit may be the least of Murdoch’s problems. It appears that Murdoch’s empire is falling apart around him. This man has hurt lots of folks along his path to tremendous wealth and power and political influence. I understand from good sources there will be much more to report in the coming weeks about the Murdoch empire and how it has been operating. I suspect some executives – and others – at Fox News might have reason to be a little bit uneasy!
Source: Insurance Journal
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