Bloomberg: Rupert Murdoch Authorized Hacking Scandal “Containment Strategy”

If you have any interest in News Corp’s News Of The World hacking scandal, then you should check out the compelling BusinessWeek story that Bloomberg’s highly respected legal affairs reporter Greg Farrell has this morning about a key moment in the chronology last year: Farrell provides a fly-on-the-wall account of a London dinner party on May 19 where Rupert — hoping to spare himself and his son, Deputy COO James, from embarrassment — decided to let Rebekah Brooks, then CEO of News International, continue to manage the company’s response to the widening scandal. In doing so, Murdoch took the advice of former New York schools chancellor Joel Klein and an outside lawyer, Brendan Sullivan, who defended Oliver North in the Iran-Contra hearings. But he also ignored the recommendation of News Corp’s then-general counsel Lon Jacobs. He had urged Murdoch to take charge and launch his own investigation, instead of letting the London group investigate itself. The CEO told the lawyers, COO Chase Carey, Brooks and others at the party: “This is going to be handled by Joel and Brendan. I will handle the board. Everyone else stay out of it,” BW reports. Sullivan told the gathering that “Rebekah is innocent.” Two weeks later, Jacobs resigned. (more…)

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