NOTW staff sue for 'stigma damages'

Former News of the World journalists are preparing to serve a class action on the paper's owners News International and are seeking "stigma damages" for the way their career prospects were harmed by the management of the business.

Some of the paper's most senior editorial staff are understood to be among those who have approached City lawyers after the newspaper was branded "toxic" by the former News International chief executive Rebekah Brooks.

Some 283 people lost their jobs when the News of the World shut on 10 July. Many have since been offered posts in far-flung countries.

*Journalists on the New York Post – owned by News International's parent company News Corp – have been ordered to keep any documents relating to hacking or to improper payments to government officials.

News Corp lawyers yesterday told staff the action was being taken following the UK hacking scandal.