News Corp to Pay $3.2 Million Over Phone Hacking Scandal, Sales Declines
News Corp has agreed to pay $3.2 million to the family of a murdered girl whose cell phone was hacked into by one of the company's tabloids when she was reported missing. News International, the British branch of billionaire Rupert Murdoch's news conglomerate, confirmed the settlement Friday, as did the family of Milly Dowler.
Last July, Murdoch shut down the 168 year-old News of the World, a British tabloid, after evidence emerged that its reporters had hacked into the voicemails of the 13 year old girl. Dowler had been missing since 2002 and her body has since been found. In addition to the payment to Dowler's family, Murdoch will also reportedly donate another $1.6 million to charities of the family's choosing.
"Nothing that has been agreed will ever bring back Milly or undo the traumas of her disappearance and the horrendous murder trial earlier this year," read a statement from the family of the murdered girl. "The only way that a fitting tribute could be agreed was to ensure that a very substantial donation to charity was made in Milly's memory. We hope that projects will be undertaken so that some good can come from this."
The revelation that reporters at News of the World had hacked into the girl's voicemail led to an investigation that concluded that that type of activity was rampant at the tabloid. The story sent shockwaves throughout Murdoch's massive global media empire, as well as Britain's political, police and media establishments. Police have informed more than 450 people that they may have been spied on by the now-defunct tabloid, and News Corp has set aside $32 million to compensate victims.
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