News International Is Now a “Corporate Suspect”
An exclusive report from The Independent reveals that the Metropolitan Police are currently investigating News International, News Corp.’s (NASDAQ:NWSA) British subsidiary, as a “corporate suspect” related to hacking and bribing. An “active investigation” has been opened into recently rebranded News UK, which could have broader implications for News Corp.’ United States operations.
So far, one of Rupert Murdoch’s most senior lawyers has been interviewed under caution along with two senior figures within the company. The new action by Metropolitan Police caused U.S. executives to call for dramatically scaled back cooperation and an analysis regarding the effects of a corporate charge concluded that the result could “kill the corporation and 46,000 jobs would be in jeopardy.”
News Corp. lawyers have repeatedly asked the Metropolitan Police to avoid prosecuting the company as it would be thousands of jobs at risk. And last year, Gerson Zweifach, the group general counsel of News Corp, told police, “Crappy governance is not a crime. The downstream effects of a prosecution would be apocalyptic. The US authorities’ reaction would put the whole business at risk, as licences would be at risk.”