Justice Dept. Prepares News Corp. Subpoenas

by Nat Brown

The Wall Street Journal reports:

The U.S. Justice Department is preparing subpoenas as part of preliminary investigations into News Corp. relating to alleged foreign bribery and alleged hacking of voicemail of Sept. 11 victims, according to a government official.

The issuance of such subpoenas, which would broadly seek relevant information from the company, requires approval by senior Justice Department leadership, which hasn’t yet happened, the person said.

The issuance of subpoenas would represent an escalation of scrutiny on the New York-based media company. While the company has sought to isolate the legal problems in the U.K., it has been bracing for increased scrutiny from both the Justice Department and the Securities and Exchange Commission, according to people familiar with the company’s strategy.

The Justice Department has said it is looking into allegations that News Corp.’s now-defunct News of the World weekly in the U.K. paid bribes to British police. It has been unclear whether the Justice Department or the SEC have begun formal probes.

The Federal Bureau of Investigation separately has begun an inquiry into whether News Corp. employees tried to hack into voice mails of Sept. 11 victims, people familiar with the early-stage probe have said.

Full story here.