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News Corp agrees to $139 million phone-hacking settlement

  • News Corp has agreed to a $139 million settlement over a lawsuit filed by shareholders alleging the company's board of directors failed to investigate a phone-hacking scandal. The money is to be covered by the insurance policies of the directors, who are the defendants in the suits.

    In a statement released on Monday, News Corp said: "We are pleased to have resolved this matter…The agreement reflects the important steps News Corporation has taken over the last year to strengthen our corporate governance and compliance structure and we have committed to building on those efforts going forward."

    Trustees of Amalgamated Bank of New York and the Central Laborers Pension Fund, both News Corp shareholders, filed the lawsuit in March 2011 over a phone-hacking scandal in the UK and the purchase of a British television production firm.

    Tagged as: new corp scandal, phone scandal, lawsuit company, News Corp