News Corp Investors Sue Over Hacking

A group of News Corp shareholders is suing the company over the phone-hacking scandal that led to the company shutting down its British news paper, News of the World.

Led in part by New York-based Amalgamated Bank in addition to several municipal and union pension funds, the lawsuit accuses News Corp directors of failing to oversee the operations of the paper and to take action when the accusations of hacking were disclosed several years ago.  

"News Corp.’s behavior has become an egregious collection of nepotism and corporate governance failures, with a board completely unwilling to provide even the slightest level of adult supervision," attorney Jay Eisenhofer, who is co-lead counsel said in a statement.

News Corp had no comment. 

Its stock is down 12 percent since June 30 when the scandal involving the British newspaper began to expand.