News Corp. Plays Chicken with Plaintiffs

A News Corp. (NWS) unit, News Group Newspapers, has been sued more than two dozen times by actors, athletes, and politicians after allegations that journalists at its tabloid newspaper illegally accessed mobile-phone voice-mail messages for story tips. Its legal strategy? Apologize, offer plaintiffs generous pretrial settlements that are risky to refuse in the British legal system, and hope the whole episode fades from public view.

On Apr. 8, News International, another unit of News Corp. and publisher of , issued a statement expressing "genuine regret" and said it would set up a "compensation scheme with a view to dealing with justifiable claims fairly and efficiently." The apology came after the arrest of two reporters and an ex-news editor at the paper. On May 13, agreed to a £100,000 ($161,000) settlement with actress Sienna Miller of and fame. Her ex-fiancé, Jude Law, who starred in , and her stepmother, Kelly Hoppen, tentatively plan to take their lawsuits to trial.