News Corp. Wins Second Dismissal of Securities Fraud Class Action

On behalf of News Corp., subsidiary NI Group Ltd., Rupert Murdoch and James Murdoch, Skadden won the second dismissal of a putative class action securities fraud complaint arising out of news-gathering practices at News of the World and The Sun. On October 7, Judge Paul G. Gardephe of the U.S. District Court for the Southern District of New York determined that the court could not exercise personal jurisdiction over NI Group Ltd. The court also rejected the plaintiffs' attempt to expand the class period backward to end-run the court's prior ruling that the plaintiffs could not plead securities fraud on the basis of pre-class period alleged misstatements.