News Corp. May Stop Paying Legal Fees for Former News of the World Editor Andy Coulson

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U.S. Attorney General Eric Holder tells families of 9/11 victims that his team continues to investigate allegations of phone hacking in the U.S.

NEW YORK - Senior management at News Corp.'s U.K. newspaper unit has met to consider stopping paying the legal fees of former News of the World editor Andy Coulson, who later became communications chief for Prime Minister David Cameron, the Financial Times reported.

Coulson was arrested in July amid a probe into phone hacking allegations. He has gotten legal advice on the testimony he gives to parliament and police in their respective investigations, and the FT said News Corp. has been paying the fees to-date.

Meanwhile, the U.S. continues to investigate allegations that the phones of 9/11 victims were hacked by News Corp., led by chairman and CEO Rupert Murdoch, Attorney General Eric Holder told relatives of those killed in the terrorist attacks on Wednesday, according to Bloomberg News.

Norman Siegel, a lawyer who represents families of 9/11 victims, said Holder expressed commitment to the investigation, but didn't say whether there is evidence of phone hacking. “He said they had sufficient predicate at this point to open an investigation and categorize it as a preliminary investigation,” Bloomberg cited Siegel as saying. “We didn’t get the specificity we would have liked, but did not realistically expect that.”