Secured a $139 million settlement as lead counsel against News Corp’s Board for breaches of fiduciary duty tied to self-dealing and governance failures
Plaintiff(s):
Shareholders of News Corporation
Case type / claims:
Shareholder derivative action alleging breaches of fiduciary duty by News Corp’s Board of Directors for prioritizing the personal and political interests of CEO Rupert Murdoch over those of the company’s public shareholders. The claims included overpayment for News Corp’s acquisition of Shine Group Ltd., owned by Murdoch’s daughter, and failure to investigate a phone-hacking and privacy scandal at subsidiary News International.
Defendant(s):
News Corporation Board of Directors, including Rupert Murdoch
Jurisdiction:
Delaware Chancery Court
Year:
2013
Outcome:
- Grant & Eisenhofer secured a $139 million settlement — among the largest derivative settlements in Delaware Chancery Court history.
- Governance reforms implemented to strengthen oversight and prevent future conflicts of interest.
- Case underscored the duty of corporate boards to act independently and in the best interests of shareholders, even in founder-controlled companies.
