News Corp. has reached a settlement with U.S. shareholders over a phone-hacking scandal that has plagued the media giant for months, leading to several arrests and the shuttering of Britain’s News of the World weekly tabloid.
News Corp.’s vice president of communications, Nathaniel Brown, said in an email that Rupert Murdoch’s media company will “receive $139 million less whatever legal fees the court sets aside for plaintiff attorneys” in a deal the company has characterized as historic.
The News of the World ran for 168 years but was forced to close after news came to light that staffers had hacked into the voice mails of high-profile people to gain information for stories.
News Corp. directors have faced a slew of lawsuits stemming from the revelations as far back as 2011. The settlement resolves all these suits.
The Hollywood Reporter said that as part of the settlement deal, News Corp. also must set up a Compliance Steering Committee to report quarterly to the company’s audit board. In addition, the company has to establish an “anonymous whistleblowing hotline” within the News Corp. offices, the settlement states, as The Hollywood Reporter said.