In 2011, Rupert Murdoch deemed it “the most humble day of my life” as the scandal surrounding his newspapers’ phone-hacking unfolded. However, his period of humility was short-lived.
This week, Murdoch was among the distinguished attendees at Donald Trump’s inauguration. Earlier in the summer, as the UK election neared, both Sir Keir Starmer and Rishi Sunak sought to align themselves with him at his summer gathering. Despite the tumultuous years in between, Murdoch managed to navigate through considerable costs and damages, amounting to over $1 billion, to settle claims arising from the illegal activities of his news organizations on both sides of the Atlantic.
On Wednesday, a settlement was reached in a prominent phone-hacking lawsuit in the UK involving a plaintiff with the means and influence to take the case to court. While Prince Harry brought the case close to trial, he settled, reportedly for a significant sum, alongside an unprecedented apology and acknowledgment of past unlawful activities by private investigators associated with The Sun, although this did not result in an admission of liability from senior executives.
Murdoch’s News Group Newspapers, a division of News UK, has utilized its financial resources to avoid trial in at least 1,300 cases, thereby avoiding damaging disclosures. In the UK civil courts, the objective is to provide compensation rather than expose information. The legal framework encourages settlements by imposing financial risks on the plaintiff if they do not achieve a verdict exceeding the offered settlement in a trial. Those who choose to proceed with litigation can face daunting consequences. For instance, actor Hugh Grant chose to settle a case, acknowledging that litigation could lead to crippling legal bills.
For Prince Harry and his co-plaintiff, former Labour deputy leader Lord Tom Watson, the pursuit was not solely financial. They aimed to reveal new information regarding the illicit practices by Murdoch’s associates and the attempts to manage the fallout. Now that prospect has vanished, and while the duke declared a “monumental victory,” the strategy employed by News Group Newspapers has been effective. A substantial amount has been spent to keep legal battles out of the public eye.
After the settlement, Prince Harry’s attorney, David Sherborne, claimed that News Group Newspapers had “deleted over 30 million emails and made false denials.” He noted that the company had already incurred “more than £1 billion in payouts and costs” and that claimants had been compelled to accept settlements without having the opportunity to expose the truth. However, NGN’s legal team vehemently contests allegations of a cover-up, arguing that the email deletions were part of regular data management.
A similar practice of settling to evade public scrutiny occurred in the United States. In 2023, Fox News agreed to pay $787 million to resolve a defamation lawsuit from Dominion Voting Systems stemming from the network’s propagation of false claims regarding electoral fraud in the 2020 election. Fox, fearing a loss of viewership to more conservative alternatives, ultimately settled the case, while later asserting its commitment to “the highest journalistic standards.”
Murdoch’s continued acceptance within Trump’s circle and his prominence in the UK political landscape remain evident, as Conservative leaders have shelved plans for further public inquiries into media wrongdoing and opposed government regulation of the press. Starmer, while in opposition, has also sought Murdoch’s approval. The Sun endorsed Starmer in the election, likely due to the anticipated outcome of the contest.
Since then, Murdoch has officially transitioned the leadership of his enterprises to his eldest son, Lachlan, and divested his holdings in Sky TV. Rebekah Brooks, previously acquitted in the phone-hacking affair, now serves as CEO of News UK.
Despite the animosity towards Murdoch from various quarters due to his political influence, few can challenge his acumen in business and journalism. Nevertheless, the settlements inhibit critical inquiries into the conduct of his companies. Journalist Nick Davies, who exposed the scandal, has highlighted pertinent issues related to documents released in advance of the settled cases, emphasizing that they represent only one facet of the narrative.
Murdoch’s organizations have invested heavily to evade public examination, believing that the most significant backlash has subsided. The potential for essential transparency now hinges on whether law enforcement revisits the accountability of senior management at the company in light of new evidence presented by Sherborne and others. The initial inquiries were inadequately conducted, leaving several questions unanswered. A renewed investigation would be pivotal for establishing comprehensive accountability.
In conclusion, like the Buchanans in *The Great Gatsby*, Murdoch’s enterprises have caused considerable harm while retreating into financial security. He and his executives remain untouchable, continuing to receive accolades and admiration. Although Murdoch has triumphed in many respects, he has yet to fully reckon with the demands of justice.
photo credit: www.ft.com
