UK Hacking Case: News Corp Was Paying Former Editor While He Held Political Post

Andy Coulson, the former editor of the News of the World arrested on suspicion of involvement in phone hacking and bribing the police, was receiving payments from News International after starting work as the Conservative Party's Director of Communications, the BBC reports. Coulson's received hundredsof thousands of dollars inseverance paymentsuntil the end of 2007, which means he continued to be financially linked to the UK division of Rupert Murdoch's News Corp for several months during his tenure as David Cameron's main media adviser, the BBC reports. The Conservative and Labor parties traditionally battle for the endorsement of Murdoch's papers. Meanwhile Monday, Needham & Company analyst Laura Martin downgraded her recommendation on New Corp from "buy" to "hold." The company has set aside millions to prep itself for lawsuits in the scandal's wake, but Martin told Reuters she didn't think it was enough. News Corp shares, which have lost almost 14% of their value sincenews since the investigation began in July, closed down five cents at $15.51 per share on Monday.