Payouts over phone-hacking could cost news group £100m

Oliver Poole12 April 2012

The News of the World phone hacking scandal could cost News International more than £100 million after it emerged lawyers are now fighting or preparing cases on behalf of 115 people.

In a dramatic increase in the number of potential litigants since former News of the World editor Andy Coulson resigned as David Cameron's spokesman last month, 70 people have reportedly demanded the police reveal any evidence that the tabloid intercepted their voicemails. A further 45 have launched or are intending to launch civil proceedings against its owner News International for alleged breach of privacy.

The scandal has already cost News International more than £1.5 million after it was required to settle four previous civil actions, including a reported £1 million payment to the publicist Max Clifford and £700,000 to Gordon Taylor, the chief executive of the Professional Footballer's Association.

Mark Lewis, who obtained Mr Taylor's settlement, warned that this figure would likely rise if the new claims were successful. "It could reach £50 million, £100 million, even £150 million. We still do not know how many people there are who will come forward."

He also warned that if phone hacking proved to have been used more extensively than the newspaper maintains the financial impact would be more than just the legal bill. "There is also the cost of their future conduct. Stories they had been written using this technique will not be able to be brought in."

Mr Coulson was editor of the newspaper when its royal editor, Clive Goodman, and a private investigator, Glenn Mulcaire, were jailed in 2006 for accessing hundreds of messages left on the mobile phones of aides to Prince William and Harry. Police, however, brought no further prosecutions even though Mulcaire was found to have 4,332 names or partial names of people, 2,978 mobile phone numbers and 91 PIN numbers changed from default settings.

Those taking or planning legal action against News International include the actress Sienna Miller, the footballer agent Sky Andrews and the comedian Steve Coogan. News International is contesting the claims, maintaining that Goodman acted as a "rogue reporter" without the knowledge of senior managers.

The latest high-profile figure to have it confirmed that his details were held by Mulcaire is the jockey Kieren Fallon, who wasn told by police that his mobile phone number and name were among documents taken when police raided the private investigator. His lawyer has now written to News International registering a claim, and has drawn up draft proceedings ahead of a response.

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