Friday, June 1, 2012

News Corp. could face 500 civil claims related to illegal voicemail hacking by the News of the World tabloid - @WSJ

LONDON—Lawyers for both News Corp. and phone-hacking victims on Friday estimated in court that the media company will ultimately face about 500 civil claims related to illegal voice-mail interception by the now-closed News of the World tabloid.

That is about 400 more cases than have been filed or settle so far. So far, claimants have filed roughly 110 lawsuits against the company related to illicit reporting tactics by the News of the World. The media company has settled more than half of those, including high-profile cases brought by singer Charlotte Church, actor Jude Law and comedian Steve Coogan. The settlement amounts have varied, with Ms. Church receiving one of the largest payouts, at £600,000 ($924,360).

But in a court hearing related to the continuing civil litigation on Friday, attorneys for both sides said they expect the total number of cases to continue growing.

"This is about scale," Michael Silverleaf, a lawyer representing News Corp., told the High Court on Friday, while engaging in a debate over how much lawyers on both sides should be paid. "We're dealing with 500 claims or potential claims." Jeremy Morgan, a lawyer for the victims, put the estimate of settled, unresolved or potential claims at 520.

At the moment, the court is in possession of 49 live cases that haven't been settled, Hugh Tomlinson, another lawyer representing the phone-hacking victims, said Friday. He said there were another 200 or so claimants who have given "undertakings," meaning they have requested information from the police and are preparing filings. The parties didn't specify where the remaining 200 or so cases they estimate would come from.

Geoffrey Vos, the High Court judge overseeing the litigation process, said his clerk had received a "rush of undertakings" in recent days ahead of a court-appointed deadline this month.

None of the civil cases filed against the company for phone hacking has progressed to a trial. News Corp. has said it wants to settle all civil cases out of court and avoid trials if possible. Still, Mr. Vos is preparing to hold trials for so-called "lead cases," which are suits that would serve as indicators for how much other victims should be compensated.

The legal battles carry a mounting cost for News Corp. In early May, the company reported that it had spent $167 million on phone hacking-related legal fees, internal investigations and legal settlements in the nine months ended March 31. News Corp. owns The Wall Street Journal.

The lawsuits are part of a costly fallout from a scandal over illicit reporting tactics used by the News of the World, including the practice of hacking the mobile phone voice mail boxes of politicians, crime victims and celebrities in pursuit of scoops. The tactics led News Corp. to shut down the tabloid last July. Separately, London's Metropolitan Police are conducting a criminal investigation into the matter.

Write to Paul Sonne at paul.sonne@wsj.com