Ian Burrell: Cost to News International's reputation is biggest worry

Share
Related Topics

If Rupert Murdoch's News Corp is really serious about bringing the phone hacking scandal at the News of the World (NOTW) to a close, it must act quickly and decisively. Before Christmas the group shifted its strategy by suspending and later sacking NOTW executive Ian Edmondson. This apparently signalled a new approach at News International, Mr Murdoch's British newspaper division. At the start of the year, the media mogul himself was in town to try to put things in order at Wapping.

But Mr Murdoch is back in the US and events yesterday in the High Court in London showed that the phone hacking scandal is anything but over. Mr Justice Vos voiced his concern at the sheer volume of civil cases being brought and urged the various lawyers to work together to streamline the legal equivalent of a giant rolling snowball that continues to grow.

The difficulty for News International is that, strategically, it is a matter of the utmost complexity.

Though it is a legal issue, the long-term cost in terms of corporate reputation could be far higher than that paid out in settlements, damages and lawyers' fees.

The range of options is wide, from settling with all claimants for upwards of £750,000 to fighting every case through the courts. The former is virtually a non-starter. News Corp is determined not to offer huge settlements like those given to publicist Max Clifford and Gordon Taylor of the Professional Footballers' Association. Furthermore, claimants such as former MP George Galloway have said they want their day in court. The latter scenario would be unthinkable in terms of bad publicity.

In the meantime, senior News International executives such as general manager Will Lewis and director of corporate affairs Simon Greenberg are immersed in a subject that is rarely out of the news.

The News of the World itself is also being continually distracted from its central task of breaking stories.

All of this is costing money. News Corp must do something – but what?

React Now

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
iJobs Job Widget
iJobs General

Recruitment Genius: Administrative Assistant / Order Fulfilment

£14000 per annum: Recruitment Genius: An exciting opportunity to join a thrivi...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + Uncapped OTE: SThree: Trainee Recruitment Consulta...

SThree: Trainee Recruitment Consultant

£18000 - £23000 per annum + Uncapped OTE: SThree: Trainee Recruitment Consulta...

Recruitment Genius: Production Operative

£13000 - £17000 per annum: Recruitment Genius: Due to a period of sustained an...

Day In a Page

Read Next
 

Syria's Kurds have little choice but to flee amid the desolution, ruins and danger they face

Patrick Cockburn
A bartender serves two Mojito cocktails  

For the twenty-somethings of today, growing up is hard to do

Simon Kelner
Refugee crisis: David Cameron lowered the flag for the dead king of Saudi Arabia - will he do the same honour for little Aylan Kurdi?

Cameron lowered the flag for the dead king of Saudi Arabia...

But will he do the same honour for little Aylan Kurdi, asks Robert Fisk
Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Our leaders lack courage in this refugee crisis. We are shamed by our European neighbours

Humanity must be at the heart of politics, says Jeremy Corbyn
Joe Biden's 'tease tour': Could the US Vice-President be testing the water for a presidential run?

Joe Biden's 'tease tour'

Could the US Vice-President be testing the water for a presidential run?
Britain's 24-hour culture: With the 'leisured society' a distant dream we're working longer and less regular hours than ever

Britain's 24-hour culture

With the 'leisured society' a distant dream we're working longer and less regular hours than ever
8 best children's clocks

Tick-tock: 8 best children's clocks

Whether you’re teaching them to tell the time or putting the finishing touches to a nursery, there’s a ticker for that
Isis profits from destruction of antiquities by selling relics to dealers - and then blowing up the buildings they come from to conceal the evidence of looting

How Isis profits from destruction of antiquities

Robert Fisk on the terrorist group's manipulation of the market to increase the price of artefacts
Labour leadership: Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea

'If we lose touch we’ll end up with two decades of the Tories'

In an exclusive interview, Andy Burnham urges Jeremy Corbyn voters to think again in last-minute plea
Tunisia fears its Arab Spring could be reversed as the new regime becomes as intolerant of dissent as its predecessor

The Arab Spring reversed

Tunisian protesters fear that a new law will whitewash corrupt businessmen and officials, but they are finding that the new regime is becoming as intolerant of dissent as its predecessor
King Arthur: Legendary figure was real and lived most of his life in Strathclyde, academic claims

Academic claims King Arthur was real - and reveals where he lived

Dr Andrew Breeze says the legendary figure did exist – but was a general, not a king
Who is Oliver Bonas and how has he captured middle-class hearts?

Who is Oliver Bonas?

It's the first high-street store to pay its staff the living wage, and it saw out the recession in style
Earth has 'lost more than half its trees' since humans first started cutting them down

Axe-wielding Man fells half the world’s trees – leaving us just 422 each

However, the number of trees may be eight times higher than previously thought
60 years of Scalextric: Model cars are now stuffed with as much tech as real ones

60 years of Scalextric

Model cars are now stuffed with as much tech as real ones
Theme parks continue to draw in thrill-seekers despite the risks - so why are we so addicted?

Why are we addicted to theme parks?

Now that Banksy has unveiled his own dystopian version, Christopher Beanland considers the ups and downs of our endless quest for amusement
Tourism in Iran: The country will soon be opening up again after years of isolation

Iran is opening up again to tourists

After years of isolation, Iran is reopening its embassies abroad. Soon, there'll be the chance for the adventurous to holiday there
10 best PS4 games

10 best PS4 games

Can’t wait for the new round of blockbusters due out this autumn? We played through last year’s offering