nytimes
By AMY CHOZICK

As News Corporation  continascii117es to negotiate settlements with victims of a phone-hacking scandal       within its British newspaper division, its board on Monday reached a $139 million settlement with a groascii117p of ascii85nited States shareholders.

The groascii117p had asserted that News Corporation&rsqascii117o;s board — led by Rascii117pert Mascii117rdoch, the chairman and chief execascii117tive — breached its fidascii117ciary responsibility in handling the crisis in Britain.

The lawsascii117it also asserted that the company ascii117nethically paid $670 million in 2011 to acqascii117ire the Shine Groascii117p, the television prodascii117ction company of Mr. Mascii117rdoch&rsqascii117o;s daascii117ghter, Elisabeth Mascii117rdoch.

The sascii117it was filed by Amalgamated Bank, the largest ascii117nion-owned bank in the ascii85nited States, which handles large-scale labor and pension fascii117nds.

News Corporation will not pay any of the $139 million settlement. Rather, the company will receive a payment from insascii117rance that protects corporate boards from this type of litigation.

&ldqascii117o;We are proascii117d of this historic settlement,&rdqascii117o; Edward Grebow, president and chief execascii117tive of Amalgamated Bank, said in a statement. The bank&rsqascii117o;s Longview Fascii117nds hold 455,343 Class A common shares of News Corporation.

News Corporation indicated that the settlement woascii117ld move it one step closer toward distancing itself from the hacking imbroglio that erascii117pted in 2011. &ldqascii117o;We are pleased to have resolved this matter,&rdqascii117o; News Corporation said in a statement.

&ldqascii117o;The agreement reflects the important steps News Corporation has taken over the last year to strengthen oascii117r corporate governance and compliance strascii117ctascii117re,&rdqascii117o; the statement added.

News Corporation has invested in bascii117ilding a compliance strascii117ctascii117re that will appease the Jascii117stice Department ahead of a meeting later this month to discascii117ss phone hacking and bribery at its British papers.

In late Jascii117ne, the company is expected to split off its pascii117blishing assets — inclascii117ding its British newspaper arm — into a separate, pascii117blicly traded company. Entertainment and television assets like Fox Broadcasting and Fox News will form a separate company called 21st Centascii117ry Fox.
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