Explainer-Prince Harry settles lawsuit against Rupert Murdoch's UK newspaper group

LONDON (Reuters) - Prince Harry claimed victory in his long-running legal battle against Rupert Murdoch's British newspaper group, after reaching a deal to settle his lawsuit which included an apology for unlawful actions relating to the Sun for the first time.

Here are details of the case:

WHAT WAS THE CASE ABOUT?

Harry was suing News Group Newspapers (NGN) over alleged unlawful activities carried out by journalists and private investigators working for its papers, The Sun and the now defunct News of the World, from 1996 until 2011.

The prince and former senior British lawmaker Tom Watson were the only two claimants left to go to trial, after others reached a deal, including actor Hugh Grant, who reluctantly settled.

NGN, which is ultimately owned by News Corp, has settled claims from more than 1,300 people including celebrities, politicians and sports figures.

The publisher closed the News of the World in 2011 after the phone-hacking scandal first emerged, but had always denied claims of unlawful activity at The Sun – until Wednesday.

While NGN's apology stopped short of admitting unlawful activities by journalists working for The Sun, referring only to private investigators, Harry's lawyer said the agreement represented vindication for those who had previously settled.

In their joint statement, Harry and Watson said NGN had now paid out more than 1 billion pounds.

WHAT IS THE PHONE-HACKING SCANDAL?

Phone-hacking, the illegal interception of voicemails on mobile phones, first came to public attention in 2006 when the then-royal editor of the News of the World tabloid and a private investigator were arrested.

They pleaded guilty and were jailed in 2007. In 2011 further revelations emerged, including that a murdered schoolgirl had been targeted, leading to Murdoch closing the paper.

The scandal also led to a high-profile public inquiry into the ethics of the British press and a criminal trial, following which former News of the World editor Andy Coulson was found guilty of conspiracy to hack phones and jailed in 2014. 

Rebekah Brooks, a former editor of the News of the World and The Sun, was acquitted of all charges and later returned to Murdoch's publishing empire. She currently heads up News Corp's UK operation.

HOW SIGNIFICANT IS THE SETTLEMENT?

Harry's legal team hailed the deal as a huge victory, with NGN admitting unlawful activity at The Sun for the first time – something the publisher had repeatedly sought to prevent, even as it settled "Sun-only" lawsuits from Grant and Sienna Miller.

But for NGN and senior executives – including Brooks, the chief executive of News UK – avoiding eight weeks of negative headlines and extensive evidence being made public in a trial may also feel like a win.

The judge, Timothy Fancourt, acknowledged that the deal makes it highly unlikely that a trial of allegations of phone hacking and other unlawful information gathering at The Sun and News of the World would ever take place.

NGN for its part said Wednesday's deal "draws a line under the past and brings an end to this litigation", adding that it would apply to throw out any further cases which may be brought.

However, the claimants are expected to turn their focus to putting pressure on politicians and the police to revisit the phone-hacking scandal in the light of Wednesday's apology.

Speaking outside court, Watson laid down the gauntlet to Prime Minister Keir Starmer and Metropolitan Police chief Mark Rowley, saying the claimants intend to provide the police with a "dossier exposing wrongdoing".

WHO ELSE IS PRINCE HARRY SUING?

The NGN case is one of three major lawsuits that Harry has pursued against British media organisations. He successfully sued Mirror Group Newspapers, winning substantial damages after a 2023 trial, and is also suing the publisher of the Daily Mail and Mail on Sunday, which is due to go to trial in 2026.

(Reporting by Sam Tobin and Michael Holden, Editing by Timothy Heritage and Gareth Jones)