News Corp pays out over hacking claims, said to admit coverup

LONDON Thu Jan 19, 2012 10:20am EST

News Corp Chief Executive and Chairman Rupert Murdoch holds a copy of The Times newspaper as he leaves his home in London July 20, 2011. REUTERS/Andrew Winning

News Corp Chief Executive and Chairman Rupert Murdoch holds a copy of The Times newspaper as he leaves his home in London July 20, 2011.

Credit: Reuters/Andrew Winning

LONDON (Reuters) - The British newspaper arm of Rupert Murdoch's News Corp has agreed to settle a string of legal claims over phone hacking, after victims said the company had admitted its management knew about the practice and tried to cover up.

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.

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.

On Thursday, lawyers for victims who have reached settlements said their agreements were based on News Group Newspapers, publisher of some of News International's titles, acknowledging that senior management were at fault.

The company is now seeking to settle all the claims.

"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.

News International declined to comment. It has not admitted or denied the claims but has agreed the compensation on that basis, the victims' lawyers 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 pounds ($46,000) to 60,000 pounds, while some were not revealed. Actor Jude Law accepted 130,000 pounds after he was physically followed abroad as well as in Britain.

"It is clear that I, along with many others, was kept under constant surveillance for a number of years," Law said in a statement. "No aspect of my private life was safe from intrusion by News Group newspapers, including the lives of my children.

"I believe in a free press but what News Group did was an abuse of its freedoms. They were prepared to do anything to sell their newspapers and to make money."

The settlements may lift some immediate pressure off the group, as it will prevent lawyers from poring over further details in open court, and it could result in all cases eventually settling as the size of the payouts set a precedent.

But it could also lead to increased scrutiny of the role played by James Murdoch.

Murdoch's son James was placed in charge of News International only after the hacking, but has been accused of leading a cover-up. He has denied all knowledge of the scale of the problem and blamed many of those around him for the failings.

PAY-OUT TIME

The court was told that 36 claimants were now ready to settle, including actor Law, former deputy Prime Minister John Prescott, politician Chris Bryant and other celebrities, while 10 cases were ready to go to court.

News Corp has already received 60 claims and police say there are almost 6,000 potential victims. The legal costs to be paid by News International will also vary hugely, lawyers said.

Lawyers for the victims said they had obtained documents from News International that revealed the scale of the malpractice, partly thanks to the fact that the 12 solicitors' firms involved had joined forces to work together.

"As a result, documents relating to the nature and scale of the conspiracy, a cover-up and the destruction of evidence/email archives by News Group have now been disclosed to the claimants," their statement said.

The long-running case blew up in July when it emerged that the voicemail of missing schoolgirl Milly Dowler, later found dead, had been hacked into by the News of the World.

News Corp took the drastic step of shutting down the 168-year-old tabloid and pulled its plan to take full control of Britain's highly profitable satellite broadcaster BSkyB.

The scandal had already forced the resignation of Prime Minister David Cameron's spokesman, a former News of the World editor, and later prompted the resignations of senior police officials who were accused of failing to properly investigate the affair.

Three criminal probes are now under way while a judge-led inquiry into Britain's press ethics sits most days, bringing yet more attention to the conduct of the media as it seeks to draw up new regulations.

"I'm grateful to News Group for finally acknowledging, admitting and apologizing for their unlawful voicemail interception," Graham Shear, a lawyer representing victims who also had his own phone hacked, told Reuters.

"But I'm a bit frustrated that they didn't find a way to do this earlier, having previously strenuously defended my own claim and the claims on which I'm acting."

(Reporting by Georgina Prodhan and Kate Holton; Editing by Peter Graff)

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Comments (7)
stambo2001 wrote:
So Murdochs fortune is tied to profits of crime then. Why are these individuals accepting payments? They should be filing criminal complaints and then seeking civil damages after prosecution. Is this the middle east where cash can be traded for justice?!?

Jan 19, 2012 7:23am EST  --  Report as abuse
canpie wrote:
This is why I stopped reading newspapers in early sixties. The only news to trust in North America today is Huffington Post.

Jan 19, 2012 8:13am EST  --  Report as abuse
AlkalineState wrote:
Fair and Balanced.

Jan 19, 2012 11:27am EST  --  Report as abuse
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Slaying of a journalist