Murdoch and son sued over US fall

RUPERT Murdoch, chairman of News Corp, and his son Lachlan are being sued by shareholders in TV guide company Gemstar over the $30bn (£19bn) fall in its value in the past two years.

They allege that News Corp, which owns 42% of Gemstar, and the Murdochs, who sit on the US company's board, helped defraud investors by 'causing Gemstar to engage in unlawful conduct'. The lawsuit claims Gemstar failed to issue reports showing the falling value of the business and threats to its major asset, patents for a system to record television programmes.

The legal row will worsen the Murdochs' already rocky relationship with Gemstar. He is reported to be so angry with the way things have gone that he is trying to have Gemstar chief Henry Yuen fired.

News Corp has had to write off about $4bn of its investment in Gemstar and is expected to write off another $1bn when it reports results later this month.