NEWS OF THE WORLD

Investors: News Corp. a ‘Complete Failure’

No oversight in phone-hacking scandal.

A group of investors filed a class-action lawsuit Monday accusing News Corp. of a “complete failure” of oversight in the phone-hacking scandal that has caused one of its flagship newspapers, News of the World, to shut down. Filed in Delaware Chancery Court, the suit alleges the “culture” at News of the World had “run amuck within News Corp. and a Board provided no effective review or oversight.” Jay Eisenhofer, the co-lead counsel of overseers, said in a statement the “egregious nepotism” and lack of the “slightest level of adult supervision” had resulted in “a piling on of questionable deals, a waste of corporate resources, a starring role in a blockbuster scandal, and a gigantic public relations disaster.”