23 Apr 2013

Settlement with disgruntled investors by News Corp

12:32 pm on 23 April 2013

News Corp has reached a settlement with some unhappy shareholders.

The company is paying $US139 million to settle a case brought by shareholders who claim Newscorp failed to investigate the company's phone hacking scandal.

In March 2011 the group sued News Corp over its acquisition of Shine Group, a TV production company owned by Rupert Murdoch's daughter. They claim he paid too much for it.

And a few months later, News Corp closed The News of the World tabloid newspaper over the phone hacking scandal in Britain.

Shareholders reacted by ammending their lawsuit to include claims relating to the hacking scandal.

Broadcasting and media consultant Steve Hewlett said shareholders were frustrated that Mr Murdoch's commitment to newspapers was damaging the profitabity of the company's entertainment business.