News Corp. Shareholders Add Hack to Attack

Argue that board should have exercised better oversight
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Efforts by News Corp. critics to capitalize on revelations about phone hacks and police payoffs at its News of the World tab continued last week.

News Corp. investors have filed updated claims of corporate governance failures in Delaware Chancery Court over the hacking scandal that prompted the shuttering of News of the World after over 150 years.

Amalgamated Bank and a number of municipal and union pensions funds argue that News Corp.'s board should have exercised better oversight over the hacking issue, since news of it was first reported more than half a decade ago. That is according to a spokesperson for Grant & Eisenhofer, which is co-counsel for the shareholders.

The new filing comes in the form a supplement to a suit filed in Delaware in May challenging News Corp's purchase of Shine Group Ltd., a UK TV and film production company majority owned by News Corp. Chairman Rupert Murdoch's daughter, Elizabeth.

The shareholders are also trying to block Elizabeth Murdoch from being seated on News Corp's board, arguing that the board is already insufficiently independent from the Murdoch family.

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