Rupert Murdoch Hiring Big Legal Guns, May Fear Hacking Scandal Is Spreading To U.S.
News Corp. began hiring big-time U.S. legal firepower, a possible sign the firm fears its scandal will spread to America. The directors are said to be increasingly concerned about Rupert Murdoch’s stewardship of the firm and appear to be bracing for new U.S. legal trouble. Hit the jump to read the rest of the story.
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News Corp. began hiring big-time U.S. legal firepower, a possible sign the firm fears its scandal will spread to America.
The company’s nine independent directors hired former Manhattan U.S. Attorney Mary Jo White and former Attorney General Michael Mukasey, who served under President George W. Bush.
By denying knowledge of the phone hacking, bribery and hush money rampant at News of the World, experts said Rupert Murdoch and his son James may have left themselves open to shareholder charges of incompetence.
Separately, The Wall Street Journal reported News Corp. hired Washington lawyer Mark Mendelsohn, a top expert in the Foreign Corrupt Practices Act.
The FBI is looking into whether any News Corp. employees hacked phones in the United States, and whether the bribes the midtown-based company has admitted were paid to cops in Britain violate the corrupt practices act.
The 1977 law cracks down on U.S. companies using bribery abroad.
In a related development, Sen. Frank Lautenberg (D-N.J.) asked the FBI to look into charges that a News Corp. subsidiary hacked into the computers of a New Jersey rival to steal business secrets in 2004.
News America Marketing effectively quashed the accusation from Floorgraphics Inc. by settling a 2009 suit for $29 million.
“It may be relevant to your current investigation,” Lautenberg wrote to the FBI.
There was one bright spot for the Murdochs on Wednesday: They won a key vote of confidence from the Saudi billionaire who owns the largest nonfamily chunk of News Corp. stock.
“I commend my friends and partners Rupert and James” for answering “all questions with full honesty and integrity,” Prince Alwaleed bin Talal said in a statement.
He said News Corp. remains “a valuable and long-term investment” and said he is still “both supportive and confident in the leadership of Rupert and James Murdoch.”
It was the first unalloyed good news for the Murdochs in a catastrophic July that has seen their reputations blown up, their best-selling paper shuttered, top lieutenants quitting or arrested and the collapse of a $12 billion satellite-TV deal in Britain.
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MUSIC
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Bobby Konders Presents: Massive B Legacy, Vol. 1
Release Date: November 19th, 2018 Bobby Konders Presents: Massive B Legacy – Volume 1 is now available and includes ten features on ten tracks. Burro Banton, Vybez Kartel, Bounty Killa, Sizzla, T.O.K., Elephantman, Richie Spice, Chezidek, Chronicle, and King Kong. You can listen on Apple Music, Spotify, and Tidal.
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(Video) Tony James – Sweat Slow
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TECH TALK
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MARISA EXPLAINS IT ALL
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Behind The Lyrics: Lil Wayne Admits To Botched Suicide Attempt As A Child On “London Roads”
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(Video) Machine Gun Kelly Finally Opens Up About Amber Rose
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