News Corp phone-hacking compensation scheme offers secrecy and 10 per cent uplift

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On the same day that the Met that it knows of nearly 6,000 potential targets of phone-hacking by the News of the World – News Corp has announced details of its plans to compensate the thousands of claimants who could come forward.

Some 60 individuals are already suing News International for breach of privacy over claims of phone-hacking.

News Corp today revealed details of a voluntary compensation scheme which seeks to bypass the need for costly litigation and is being overseen by former High Court judge Sir Charles Gray.

Under the scheme News International undertakes to search its own files for documents relating to an applicant’s claim. It also promises to pay a 10 per cent uplift on any payout recommended by Sir Charles. This means applicants could potentially stand to gain bigger payouts via the News Corp scheme than they would in court.

The News Corp scheme also offers claimants the option of anonymity – something they would not get in court.

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