Lawsuit lodged in 2011 claimed company's board failed in its fiduciary duty to prevent phone-hacking scandalNews Corporation has reached a $139m (£91m) settlement with shareholders over a lawsuit claiming that its board of directors put Rupert Murdoch's interests ahead of the company over the phone-hacking scandal, and the acquisiton of his daughter Elisabeth's TV company Shine.The settlement of the class action, with News Corporation shareholders including Amalgamated Bank of New York and the Central Laborers Pension Fund, is claimed to be the largest cash settlement ever in a derivative lawsuit.The lawsuit lodged in 2011 claimedt News Corporation's board failed in its fiduciary duty to prevent the phone-hacking scandal that has engulfed News International, Murdoch's UK newspaper division that included the now defunct News of the World.It also challenged the media conglomerate's directors for giving Murdoch the greenlight to purchase of TV production company Shine, the maker of MasterChef which is run by Rupert's daughter Elisabeth Murdoch, for $675m in 2011.The Amalgamated Bank of New York and the Central Laborers Pension Fund claimed the deal was a case of "nepotism" and that the board of News Corp failed to question or challenge Rupert Murdoch.The lawsuit accuses Rupert of treating News Corp "like a wholly owned family candy store" and argues that a fair price was not achieved for Shine.News Corporation said in a statement the money would come from insurance policies held by members of the board who were the defendants in the suits, who included James and Lachlan Murdoch.The settlement includes extensive corporate governance reforms at News Corporation, which is soon to be split into separate stockmarket-listed publishing and entertainment businesses."We are pleased to have resolved this matter," said News Corporation in a statement.
News Corporation Reaches $139m Settlement With Shareholders
Mark Sweney, The Guardian
Mon, 04/22/2013 - 8:37am
Topics: retirement system. elisabeth's tv world lachlan grant eisenhofer bernstein litowitz city new orleans employees retirement noel beasley twitter facebook news corporationnews internationalrupert statesnewspapers sweneyguardian.co guardian news media limited terms conditions more feeds corporation murdoch elisabeth shine news corporation amalgamated bank york central laborers pension fund news news corp news international rupert to guardian mediaguardian settlement with shareholders company board lawsuit governance phone-hacking claimed failed corporate daughter committed scandal pleased included duty statement co-lead prevent lodged publication directors fiduciary
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