News Corp. (NWSA)’s U.K. unit agreed to pay 3 million pounds ($4.78 million) to settle claims that the News of the World tabloid hacked the mobile-phone messages of schoolgirl Milly Dowler, who was murdered in 2002.
The settlement includes a 2 million-pound payment to the Dowler family and a 1 million-pound donation to charity, London- based News International said today in a statement. News Corp. Chairman Rupert Murdoch, 80, was personally involved in the negotiations, a person familiar with the matter said last month.
“When I met with the Dowlers in July, I expressed how deeply sorry I was for the hurt we had caused this family,” Murdoch said in the statement. “The behavior that the News of the World exhibited towards the Dowlers was abhorrent and I hope this donation underscores my regret for the company’s role in this awful event.”
Reports in July that Dowler’s messages had been intercepted triggered a public outcry that led New York-based News Corp. to close the 168-year-old tabloid and drop its 7.8 billion-pound bid for full control of British Sky Broadcasting Group Plc. (BSY) A Parliamentary committee has recalled News Corp. Deputy Chief Operating Officer James Murdoch to answer more questions after former executives questioned his testimony about his knowledge of the extent of hacking at the News of the World.
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