News Corp seeks dismissal of lawsuit over hacking

DOVER, Delaware (AP) - Attorneys for News Corp asked a Delaware judge on Wednesday to dismiss a shareholder lawsuit alleging that company directors allowed a damaging cover-up of the phone hacking scandal in Britain.

The plaintiffs claim the board, in blind deference to chief executive officer Rupert Murdoch, ignored several red flags about the extent of the hacking, dating back several years, and failed to act until the scandal exploded in 2011 after British authorities reopened an investigation into the Murdoch-owned tabloid News of the World.

The shareholders say the damaging financial fallout included the folding of the best-selling News of the World after 168 years and News Corp being pressured to withdraw its US$12 billion (S$14.7 billion) takeover bid for satellite broadcaster British Sky Broadcasting Group.

Investigations into the hacking scandal have resulted in more than 40 arrests. Among those facing criminal charges are Rebekah Brooks, the former chief of News Corp's British operations, and Andy Coulson, a former tabloid editor and the former communications chief for Prime Minister David Cameron.