Wednesday, December 21, 2011

SEC Filings Topping Santa's Naughty List in 2011, Part I

In straightforward fashion, News Corp. (NWS-$17.83) reported that the company faced criminal investigations regarding the well-publicized phone hacking scandal and “inappropriate payments” (bribes) to British police made by higher-ups at the media company’s erstwhile publication, News of the World. “It is also possible that these proceedings could damage our reputation and impair our ability to conduct our business,” declared the 10K filing. You think? In July, the media conglomerate withdrew its $12.4 billion takeover bid for British pay-tv satellite broadcaster British Sky Broadcasting (BSkyB), following pressure from the government.

Despite mounting legal problems, it was another profitable year for anyone named Murdoch at the family-controlled holding: Chairman and CEO Rupert Murdoch took home total compensation of $33.3 million, up from $22.7 million in 2010; his son James, deputy chief operating officer, pocketed $17.9 million, a 70 percent increase over the prior year. It looks like the financial messes resulting from the newspaper scandal didn’t damage the Murdochs’ ability to conduct business.

Read the rest of the “Worst of the Bad - Part I" regulatory filings of 2011 at 24/7 Wall Street…

David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.

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