A crisis is a terrible thing to waste — even in litigation.
Amalgamated Bank of New York and Central Laborers Pension Fund in March filed a writ against News Corp, alleging that its purchase of Elisabeth Murdoch’s Shine company was “nepotistic”.
And now they’ve amended their suit to include all that has come to light in News Corp in the past few weeks.
Suing News Corp for being a family business is kind of like accusing the House of Medici of doing each other the odd political favour, so it’s little surprise that the shareholders have tried to strengthen their case.
You can read the amended law suit here but these excerpts provide the gist:
These revelations should not have taken years to uncover and stop. These revelations show a culture run amuck within News Corp and a Board that provides no effective review or oversight.
Throughout his tenure, Murdoch has treated News Corp like a familycandy jar, which he raids whenever his appetite strikes.
For the moment at least, Rupert Murdoch has other things to concentrate on.
Related links:
Not bad for an octogenarian – FT Alphaville
Funds sue News Corp over Shine deal – FT
News Corp. Shareholders in Class Action Over Hacking – Forbes Mixed Media