News Corp shareholders file new allegations

Reuters News
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Posted: Sep 13, 2011 10:28 AM
News Corp shareholders file new allegations

(Reuters) - The board of News Corp knew more than 10 years ago that the company's U.S. subsidiaries were illegally hacking competitors' computers, according to a revised lawsuit filed by shareholders on Tuesday.

The board of directors failed to properly oversee the company's chairman and founder, Rupert Murdoch, according to a copy of the amended complaint provided by lawyers for the plaintiffs.

"The Board has not lifted a finger to engage in any oversight of Murdoch's rule, even when it was provided with clear and unmistakable warnings that News Corp's business practices were not only unethical, but also illegal," said the complaint, filed in Delaware Chancery Court.

News Corp has been engulfed by the scandal since July when it was revealed that a phone-hacking scandal extended beyond celebrities and politicians to murder victims, including schoolgirl Milly Dowler, and British war dead.

The scandal wiped billions of dollars off News Corp's market value, cost it two senior executives, forced it to drop a $12 billion bid for BSkyB and resulted in the shutdown of the 168-year-old News of the World tabloid.

(Reporting by Tom Hals; editing by John Wallace)