Kahn Swick & Foti, LLC ("KSF") and Former Attorney General of Louisiana, Charles C. Foti, Jr. announce the commencement of an investigation into News Corp. ("News Corp." or the "Company") (Nasdaq: NWS) after News Corp. announced the acquisition of Shine Group for $675 million. Shine is majority-owned by Rupert Murdoch's daughter Elisabeth. KSF's investigation will revolve around whether News Corp. is paying fair consideration for Shine Corp.
According to a story that ran in Fortune on February 24, 2011:
"The Murdoch family owns only about 12% of News Corp., but Rupert Murdoch sure runs the place like a wholly-owned family candy store. The company, blurring the distinction between public and family business, makes deals with family members, using shareholder money to get them into the corporate fold.
The most recent example is the $675 million deal for News to buy Shine Group, a London-based TV production company majority-owned by Murdoch's daughter, Elisabeth. As part of the deal, she'll go on News Corp.'s board. In other words, News is buying Elisabeth, not just her company.
…this all-in-the-family stuff just isn't right for a public companyit's a whole different thing to use assets of a company 88% owned by the public to buy businesses owned by Murdoch children."
If you have information that would assist KSF in its investigation, or would like to discuss your legal rights as a shareholder, you may, without obligation or cost to you, e-mail or call KSF Managing Partner, Lewis Kahn (lewis.kahn@ksfcounsel.com), toll free 1-877-515-1850, after hours via cell phone 504-301-7900, or KSF Director of Client Relations, Neil Rothstein, Esq. (neil.rothstein@ksfcounsel.com), toll free at 877-694-9510, or after hours via cell phone 330-860-4092.
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities class action and shareholder derivative litigation with offices in New York and Louisiana. KSF's lawyers have significant experience litigating complex securities class actions nationwide on behalf of both institutional and individual shareholders. Recent cases include In re Virgin Mobile USA IPO Litigation, 2:07-cv-05619-SDW-MCA (D. N.J.), Co-Lead Counsel, $19.5 million settlement; In re BigBand Networks, Inc Securities Litigation, 3:07-CV-05101-SBA (C.D. Cal.), Co-Lead Counsel, $11 million settlement; In re U.S. Auto Parts Networks, Inc. Securities Litigation, 2:07-cv-02030-GW-JC (C.D. Cal.),Lead Counsel, $10 million settlement. KSF is also federally court-appointed Co-Lead Counsel in THE shareholder derivative cases against AIG and Bank of America (Merrill Lynch merger) emanating from their recent multi-billion dollar economic declines.
To learn more about KSF, you may visit www.ksfcounsel.com.
Contacts:
Kahn Swick & Foti, LLC
Lewis Kahn, Esq., 877-515-1850
Cell:
504-301-7900