Justice Department investigates News Corp ad arm: report

The Justice Department is looking into allegations that News Corp's advertising unit hacked into computers of a competitor, NBC News reported on Thursday, citing the competitor's lawyer.

NBC said the Justice Department is seeking information on whether News Corp unit News America Marketing hacked into computers of New Jersey advertising firm Floorgraphics seven years ago.

Floorgraphics lawyer Bill Isaacson told NBC news that he had been contacted by two federal prosecutors and an FBI agent this week.

According to NBC, the allegations were first reported to the FBI in 2004.

But News Corp's activities have become the subject of scrutiny as the result of a phone hacking scandal that has consumed Britain and rocked Rupert Murdoch's News Corp media empire.

A Justice Department spokeswoman declined comment. Isaacson and News Corp could not be immediately reached for comment.

[Source: Reuters, New York, 21Jul11]

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