News Corp. Unit Apologizes in U.K. Phone Hacking Case

Seeking to contain the damage from a long-running controversy, News Corp.'s U.K. newspaper unit said it is apologizing and admitting liability in some civil lawsuits in which the company's racy British tabloid, the News of the World, has been accused of hacking into private voicemail accounts in pursuit of scoops.

News International said Friday it would offer an 'unreserved apology' to some civil litigants and admit liability in cases that meet certain criteria. It also will establish a compensation scheme to process claims against the tabloid.

Two dozen active cases have been filed, but plaintiffs' lawyers say there could be many more waiting in the wings. So far, News International is admitting liability in eight of the 24 cases, which include those brought by actress Sienna Miller and former U.K. government minister Tessa Jowell. Though News International has settled some civil suits in the past related to phone hacking, this is the first time the company is admitting liability.

The move represents News International's first major mea culpa in a story that, for five years, has plagued the U.K.'s dominant newspaper publisher. The company initially said only one reporter was aware of the invasive reporting tactics, an assertion proved untrue by later events.

'[P]ast behavior at the News of the World in relation to voicemail interception is a matter of genuine regret,' News International said in a statement. 'It is now apparent that our previous inquiries failed to uncover important evidence and we acknowledge our actions then were not sufficiently robust.'

'This will begin the process of bringing these cases to a fair resolution with damages appropriate to the extent of the intrusion,' the statement said. News International said it will continue to contest cases it deems meritless or outside the scope of its responsibility. News Corp. is the parent company of The Wall Street Journal.

The development signals the company's hope that it can close a chapter in the episode, which has brought consistent criticism of the tabloid's controversial reporting tactics. It isn't clear, however, how many civil cases News International will be able to settle with plaintiffs─especially wealthy celebrities who may be intent on publicly airing the details of their cases against the company.