News Corp. Sued for US Hacking—By Shareholders

They say it knew a decade ago of illegal activity
By Kevin Spak,  Newser Staff
Posted Sep 14, 2011 11:29 AM CDT

(Newser) – Seems like there's no news but bad news for Rupert Murdoch these days: The latest legal salvo against the News Corp empire is a lawsuit alleging that its board knew for more than a decade that some of its US subsidiaries were engaged in illegal hacking, this time in the form of competitors' computers. Several investment funds with stakes in News Corp allege that the board “has not lifted a finger” to provide oversight for Murdoch, and that by not stopping these illegal practices, it exposed shareholders to undue legal risk, Reuters reports.

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The suit revolves around News Corps’ News America Marketing and NDS Group units. The former, which publishes advertising inserts for Sunday editions of newspapers, has already been the subject of five lawsuits for anti-competitive behavior, including computer hacking. One competitor alleged that its CEO once promised to “destroy” him if he got in News America’s way, saying, “I work for a man who wants it all, and doesn't understand anybody telling him he can't have it.” (Read more News Corp stories.)

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