In a press release dated 10th August 2011 News Corporation announced that from the beginning of the 30th June 2010 up to the Fourth Quarter 2011 it has paid out a grand total of US$165 million dollars in litigation settlement charges – and the litigation river is still in full spate due to Phone-Hackergate U.K.
Combine that amount with the 'forced' closure of British News Of the World which had 27% of the Sunday newspaper market share in May this year and it has to make shareholders unhappy.
1 comment:
For big companies like this, legal costs, settlements and slap-on-the-wrist fines are just a cost of doing business backed by illegal practices.
And it isn't even much of a cost - it's not like the ones breaking the law are paying anything out of their pocket or doing time.
And often these illegal practices make them much more money than it costs them. 165M sounds like a lot, but not if you're earning billions.
It's not like anyone's ever going to end up in gaol for 4 years like those facebook lusers.
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