News Corp. Shareholder Financial Losses. News Corp. shareholders have sustained serious financial losses due to the News of the World phone hacking scandal. At Parker Waichman LLP, our securities fraud lawyers have begun an investigation of News Corp. to determine if its board or officers breached their fiduciary duty to shareholders in connection with the News of the World hacking scandal. Our attorney’s investigation also seeks to determine what officers and directors of the firm knew of the alleged phone hacking activities before they became public.
Investors who have suffered financially because of the hacking allegations may be able to obtain compensation through a News Corp. shareholder lawsuit. Our securities fraud lawyers are offering free legal consultations to all News Corp. investors interested in joining such a lawsuit. To learn how our securities fraud lawyers may be able to help you recover your financial damages, please contact us today or call Parker Waichman LLP at 1-800-YOURLAWYER(1-800-968-7529).
News of the World Phone Hacking Scandal
The News Corp. hacking scandal centers around the News of the World, a 168-year-old U.K. tabloid. Reporters from News of the World are known to have hacked into phone voicemails belonging to thousands of people, including those of a teenage murder victim, British Prime Minister David Cameron, and scores of celebrities. It has also been alleged that News of the World may have hacked into phones belonging to victims of the 9/11 terrorist attacks, the victims of London’s 2005 terrorist bombings, and the families of dead British soldiers. Accusations have also been made that top U.K. police officials, including the now-former head of Scotland Yard, were bribed in order to kill the initial investigation into the News of the World hacking. All along, News Corp. officials have characterized the hacking as the work of a few rogue reporters at News of the World, but as allegations continue to pile up, that is becoming more and more difficult to believe.
The hacking scandal has already led to the demise of News of the World. At this writing, 10 former News of the World employees have been arrested in the U.K because of the hacking scandal, and the FBI has opened an investigation in the U.S about allegations that News of the World may have hacked into phones of the September 11th terrorist attacks. Rupert Murdoch, the 80-year-old founder of News Corp., and his son, James, who serves as News Corp. chairman and CEO, have been forced to testify before the British Parliament.
Since the News of the World scandal broke, shareholders have taken a tremendous financial hit, as News Corp. stock has plunged 11 percent since the end of June. From here, things may only get worse, as no one knows what the legal fallout for News Corp. could be in the end. The uncertainty has already prompted Standard & Poors credit rating service to place News Corp. on CreditWatch for negative implications.