21st Century Fox Inc. (FOXA, FOX.AU) has increased by $110
million the amount it is budgeting to cover additional legal costs
tied to the alleged use of illegal reporting tactics at News Corp's
(NWS, NWSA, NNC.AU) U.K. newspapers.
A spokesman for 21st Century Fox declined to comment on the
reasons for the increased provision.
The film and television company completed the spinoff of its
News Corp publishing business in late June but agreed in its
separation agreement to cover future legal costs tied to
allegations that News Corp journalists illegally intercepted
voicemail messages and emails.
In a filing before the split, the new News Corp estimated $60
million for future claims as of March 31. In a filing Monday, 21st
Century Fox said it has recognized about $40 million in such
costs.
As of March 31, News Corp had incurred $389 million in costs
tied to the investigations. News Corp owns The Wall Street Journal
and this newswire.
Dozens of News Corp journalists have been arrested in the U.K.
since an investigation began in 2011, and some have been charged
with crimes that include hacking phones and bribing public
officials for information.
News Corp's News of the World tabloid was closed in 2011 in
reaction to the scandal, and some reporters at The Sun tabloid also
have been accused of wrongdoing.
21st Century Fox's Class A shares dropped 1.3% to $31.55, while
News Corp's Class A shares slid 1.4% to $15.76.
Write to Kristin Jones at kristin.jones@wsj.com
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