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Shareholders file amended suit against News Corp. management, board

Published on .

Wilmington, Del.—A group of News Corp. shareholders led by Amalgamated Bank has filed an amended complaint against the company's senior management and directors for failure to correct a pattern of “illegal conduct.” The suit alleges the illegal conduct expands beyond the shuttered News of the World tabloid in London to U.S. subsidiaries that have engaged in hacking, privacy breaches and anticompetitive practices. The suit refers specifically to News Corp.’s payment of $500 million to settle a lawsuit relating to privacy breaches and aggressive business practices at its News America Marketing consumer marketing unit “The revelations surrounding News Corp.'s corporate governance lapses get worse with each new disclosure,” said Jay Eisenhofer, partner at Grant & Eisenhofer, a law firm representing the shareholders, in a statement. “In fact, our new complaint shows that the illicit phone hacking and subsequent cover-ups at News of the World were part of a much broader, historic pattern of corruption at News Corp., under the acquiescence of a board that was fully aware of the wrongdoing, if not directly complicit in the actions.”
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