Attorneys representing News Corp investors asked a judge today to force the media company’s board face a lawsuit for a damaging phone-hacking scandal that occurred on their watch, Reuters reported, while company attorneys asked for the suit to be dismissed. Delaware Chancery Court Judge John Noble declined to say at the end of the three-hour hearing when he might rule. The company contends that board members should not be subject to second-guessing by shareholders. The shareholders say that CEO Rupert Murdoch and the board that includes two of his sons, should be held responsible for damage arising from the scandal. More than 50 people have been arrested in the case, which resulted in the closure of the News Of The World. The scandal also cost News Corp what had been thought a slam-dunk deal to acquire full control of the lucrative BSkyB satellite broadcasting business. News Corp wants the case dismissed to avoid having board members provide depositions which could prove embarrassing. News Corp lawyers told the judge that the company has cooperated with investigators in the case and should not be subjected to additional interrogation by shareholders. The case actually originated as a dispute over News Corp’s $670 million purchase of the TV production company Shine from majority owner Elisabeth Murdoch, daughter of Rupert. The suit was subsequently amended to include the hacking scandal.
By THE DEADLINE TEAM | Wednesday September 19, 2012 @ 9:35pm PDTTags: News Corp, Phone-Hacking Scandal
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This article was printed from http://www.deadline.com/2012/09/news-corp-shareholders-spar-in-court-over-phone-hacking-case/