Friday, April 15, 2011

Murdoch hacking scandal set to drag into next year

Fri Apr 15, 2011 11:39am EDT

* Judge to decide on how to manage claims

* Scandal casts shadow over News Corp pay-TV deal

* Judge says first test cases could be heard end of 2011

By Georgina Prodhan

LONDON (Reuters) - A public apology from Rupert Murdoch's UK newspaper arm, designed to contain an escalating phone-hacking scandal, looked to have failed after a judge said civil cases against the firm could run into next year at least.

At a case-management conference called to decide how best to manage a potential flood of lawsuits, the presiding judge on Friday proposed testing four lead cases, including that of actress Sienna Miller, and said they could be ready around the end of the year.

So far, 24 public figures who believe their voicemail messages were intercepted by journalists at the popular News of the World tabloid are suing News International, the UK newspaper arm of News Corp.

Many more are expected to come forward after News International apologized to eight victims last week and said it would set up a compensation scheme.

Last week News Corp deputy chief operating officer James Murdoch, the son of the company patriarch, said the company had managed to "put this problem into a box" but Judge Geoffrey Vos made clear that was not the case.

"The show ain't over. That's pretty obvious," Vos told a packed London courtroom.

An investigation into newsgathering practices at the News of the World has so far touched celebrities and politicians up to British Prime Minister David Cameron and repeatedly made headline news in rival publications.

It has clouded a planned deal by parent company News Corp

for a $14 billion buyout of British pay-TV group BSkyB, with critics saying the government should put it on hold until the hacking investigation is over.

Vos proposed trying as test cases those brought by Miller, sports agent Skylet Andrew, ex-sports pundit Andy Gray and interior designer Kelly Hoppen because they encompassed a wide range of issues and were closest to being ready for trial.

"It's hard to imagine there would be generic questions that would not be raised by those cases," Vos said. He said they could be ready for trial by the end of the year or early next.

Police are also carrying out a criminal investigation. They have arrested three senior News of the World journalists so far this year, including one on Thursday.



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