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News Corp and Judith Regan settle lawsuit

NEW YORK
Fri Jan 25, 2008 4:50pm EST
People leave the News Corporation building in New York, June 26, 2007. News Corp said on Friday that it is in confidential settlement talks with publisher Judith Regan related to her 2006 termination, with no admission of liability by either side. REUTERS/Keith Bedford

NEW YORK (Reuters) - News Corp and Judith Regan said on Friday they had settled a $100 million lawsuit the publisher brought against her former employer, closing out a case with links to both O.J. Simpson and Rudy Giuliani.

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Regan's lawsuit relates to her dismissal in late 2006 from News Corp and its publishing house, HarperCollins, but captured the public's attention for its intriguing accusations of smear campaigns and cover-ups.

In the settlement, neither party admitted any liability, News Corp said. Other terms were to be kept confidential, the company said.

One claim made by the lawsuit is that a senior executive at News Corp encouraged Regan to lie to government investigators about her relationship with Bernard Kerik, the former New York police commissioner.

It said the company feared damaging information about Kerik could come back to haunt his mentor, former New York Mayor Giuliani, who is now a Republican U.S. presidential candidate.

"This action arises from a deliberate smear campaign orchestrated by one of the world's largest media conglomerates for the sole purpose of destroying one woman's credibility and reputation," according to the lawsuit, filed in November.

"This smear campaign was necessary to advance News Corp's political agenda, which has long centered on protecting Rudy Giuliani's presidential ambitions," the lawsuit added.

Regan sparked an uproar with plans to publish a book by Simpson in which he gave a hypothetical account of killing his ex-wife and her friend. Public criticism of the planned book led News Corp Chairman Rupert Murdoch to personally pull the plug on the deal.

News Corp fired Regan a month later.

In removing her, the media company also claimed Regan made anti-Semitic comments to a HarperCollins lawyer who is Jewish. The company quoted her as having complained that she was the victim of a "Jewish cabal" after the book deal fell through.

News Corp said on Friday that after "carefully considering the matter, we accept Ms. Regan's position that she did not say anything that was anti-Semitic in nature, and further believe that Ms. Regan is not anti-Semitic."

A company statement said the "parties are pleased that they have reached an equitable" settlement.

"I am grateful for the opportunity to have worked with so many gifted people and am looking forward to my next venture," Regan said in the statement.

(Additional reporting by Franklin Paul; Editing by Braden Reddall)



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