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Obvious News Corp. Admits Scandal’s ‘Damage’ Paul Taggart / Bloomberg / Getty Images

News Corp. Admits Scandal’s ‘Damage’

News Corp. admitted Monday that the phone-hacking scandal might harm the company’s reputation, despite recently reporting $2.7 billion in profits. In the company’s annual filing to the SEC, it wrote, “It is also possible that these proceedings could damage our reputation and might impair our ability to conduct our business.” The company also admitted that although it is "cooperating fully” with the investigations against it, it is “not able” to foresee the “ultimate outcome” of these investigations. News Corp. is currently under investigation by British authorities, the FBI, and the NYPD for allegations that the now-defunct News of the World newspaper—and possibly other News Corp. publications—hacked into the phones of newsworthy individuals, including the families of victims of the Sept. 11 terrorist attacks.

August 15, 2011 10:04 PM