News Corp.: Phone Hacking Probes Could 'Damage Our Reputation,’ ‘Impair Ability to Conduct Business’
In its annual report filed Monday, Rupert Murdoch's conglomerate gave little new detail about the phone hacking scandal, but provided some latest language on its possible effects.
NEW YORK – Rupert Murdoch’s News Corp. reiterated in its annual report Monday that the conglomerate is “cooperating fully” with U.S. and U.K. investigations into the phone hacking scandal, but also warned that “it is possible that these proceedings could damage our reputation and might impair our ability to conduct our business.”
What will the final cost of the scandal be? News Corp. said it is still too early to say. “The company is not able to predict the ultimate outcome or cost associated with these investigations,” it said in the annual report. “Violations of law may result in civil, administrative or criminal fines or penalties.”
However, it did say that “any fees, expenses, fines, penalties, judgments or settlements which might be incurred by the company in connection with the various proceedings could affect the company’s results of operations and financial condition.”
The latest language on the phone hacking situation came in the annual report's section on legal matters that News Corp. faces.
Echoing similar disclosures in recent weeks, the regulatory filing said that “U.K. and U.S. regulators and governmental authorities are conducting investigations after allegations of phone hacking and inappropriate payments to police at our former publication, News of the World, and other related matters, including investigations into whether similar conduct may have occurred at the company’s subsidiaries outside of the U.K.”