Phone hacking: New York lawyers exploring News Corp class action

Top 9/11 lawyer teams up with Milly Dowler solicitor to pursue possible bribery lawsuit in US courts A prominent New York lawyer who represents several families of victims of 9/11 has confirmed that he is exploring the possibility of a class action lawsuit against News Corporation on behalf of victims of its phone-hacking activities. Norman Siegel, a former head of the New York civil liberties union, said he was actively investigating legal options in both federal and New York state courts in regard to allegations that News Corp employees bribed police in the UK. He is working alongside a second New York lawyer, Steve Hyman, and in tandem with Mark Lewis of the UK firm Taylor Hampton, who represented the family of Milly Dowler. “The allegations of phone hacking and bribery against News Corporation are serious and substantial, and we will approach this initial exploration with that same seriousness,” Siegel said. Siegel has advised 9/11 families on the ongoing FBI investigation into allegations that News of the World reporters tried to break into the phone records of 9/11 victims soon after the terrorist outrages. In August he met the US attorney general, Eric Holder, to demand a full inquiry into the allegations, which were first aired by the Daily Mirror. The cross-Atlantic team of lawyers will be seeking to find out whether a class action on behalf of victims of NoW phone hacking can be launched in the US. They will also be exploring the possibility of extracting witness statements from News Corp directors, including Rupert Murdoch and his son James, in advance of any class action being lodged with the courts. However, legal experts said any action would face an uphill battle under anti-bribery laws. Mike Koehler, a specialist in anti-bribery legislation based at Butler University in Indianapolis, said that recourse to the courts was severely restricted for private claimants. The main anti-bribery law, the Foreign Corrupt Practices act, was introduced to prosecute US-based companies, of which News Corp is one, from using bribery to acquire an unfair business advantage overseas. But the courts have taken the view that any prosecution should be primarily carried out by either the Department of Justice or the financial watchdog Securities and Exchange Commission. Koehler said attempts have been made in the past to use the FCPA to launch lawsuits on behalf of private shareholders, but with only limited success. “Some of the cases have been settled for their ‘nuisance value’ – in other words: to get rid of them – but by and large these cases haven’t been very successful,” he said. John Coffee, a law professor at Columbia University, also cautioned that a class action on behalf of phone-hacking victims in the UK would face hurdles in the US. “The injuries are just too diverse and variable for this to be susceptible to class treatment.” One avenue the lawyers will be pursuing is to seek witness statements from News Corp directors, including the Murdochs. This could also be legally problematic, experts warned, as any civil action is likely to be overshadowed in the courts by the ongoing criminal investigation into News Corp activities. Earlier this week Bloomberg reported that the justice department has written to News Corp asking for information relating to the allegations that News of the World staff bribed British police in exchange for tips for stories. Phone hacking September 11 2001 News Corporation Rupert Murdoch United States Ed Pilkington guardian.co.uk

Posted by on September 23, 2011. Filed under News, Politics, World News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.