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News Corp shareholders in US seek to sue firm for 'failing to stop phone-hacking scandal'

Source : ANI
Last Updated: Thu, Sep 20, 2012 13:34 hrs

American shareholders in Rupert Murdoch's media firm News Corporation are reportedly asking a U.S. court for permission to sue the firm's board for not being able to stop the phone hacking scandal.

The shareholders, including America's Amalgamated Bank and Central Laborers' Pension Funds, have charged the company's executives with putting their own interests ahead shareholders, and for treating the firm as a 'family candy jar'.

The shareholders asked a Delaware judge to proceed with their case against Murdoch, his sons Lachlan and James and the rest of the company's board, the Guardian reports.

The lawsuit was originally filed in March 2011 over News Corp's agreement to buy Shine, a TV production company owned by Elizabeth Murdoch, the News Corp chairman's daughter, for 670 million dollars.

According to the paper, it was amended after the phone hacking scandal emerged.

"All of this harm occurred because the board chose to protect those close to Murdoch rather than investigate the misconduct when it learned about it," the shareholders said in June in their amended complaint.

"These revelations should not have taken years to uncover and stop. These revelations show a culture run amuck within News Corp and a board that provides no effective review or oversight," they charged.

According to the paper, in total 50 people have been arrested in connection with the scandal, News Corp has closed its most profitable newspaper, the News of the World newspaper, and lost a deal to take over the BSkyB satellite broadcast business. (ANI)




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