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Rupert Murdoch's company says it has agreed to pay $3.2 million to the family of a murdered schoolgirl whose phone was hacked by the News of ...

A lawyer for many of Britain's phone hacking victims said Friday that legal action would be launched in the United States against Rupert Murdoch's News Corp.

News International is expected to pay about three million pounds($4.7 million) to settle hacking claims by the family of murder victim Milly Dowler against the now defunct News of the World newspaper, sources close to the case told Reuters on Monday.

Former senior News Corp. executive Les Hinton is being recalled to testify before a parliamentary committee over a phone-hacking scandal involving journalists at the now defunct News of the World newspaper, a spokesman for the panel said Tuesday.

James Murdoch was aware that another News of the World reporter was seemingly implicated in illegal tapping, despite his statements to the contrary, say two top executives of the now-defunct newspaper. Media executive James Murdoch knew of a damaging piece of evidence three years ago that phone hacking was practiced by more than one reporter at the News of the World tabloid, despite his statements to the contrary, two of his former colleagues said Tuesday.

Even as his company weathers its biggest crisis ever, Rupert Murdoch is still pulling in a huge salary from News Corp.Regulatory filings released on Friday showed that Murdoch's total compensation for the 2011 fiscal year was $33.3 million. As technology writer Peter Kafka noted, this included a $12.5 million bonus. Murdoch also received $8.5 million in stock.

Andy Coulson, who worked as UK PM David Cameron's adviser, continued to receive payments from the newspaper at the centre of the UK phone hacking scandal, after he had left as editor.

Harbottle & Lewis, the law firm embroiled in the phone-hacking scandal sweeping Rupert Murdoch's News of the World newspaper, has taken the unusual step of fighting back against its former client to preserve its reputation.

News Corp's senior management is starting to think about what the company might do if James Murdoch stepped aside, sources inside and close to the global media empire said.

The News of the World journalist James Desborough has been arrested over alleged phone hacking at the paper.