Saturday, July 23rd 2011, 4:00 AM
The allegations against the 38-year-old Murdoch, long considered the successor to his father Rupert, raised questions about his credibility - and his future.
Murdoch, under questioning this week, said he was unaware the invasions of privacy at the now-shuttered News of the World went beyond a single reporter.
But a pair of former Murdoch top staffers contradicted the media scion, insisting he was informed years ago about an email suggesting the hacking was far more prevalent.
The incriminating missive was uncovered during a lawsuit filed by British soccer association chief Gordon Taylor over alleged hacking of his phone.
The email, which included a transcript of an illegally obtained conversation, seemed to implicate others at the muckraking tabloid.
"We would like to point out that James Murdoch's recollection of what he was told when agreeing to settle the Gordon Taylor litigation was mistaken," said former legal adviser Tom Crone and ex-editor Colin Myler.
"In fact, we did inform him of the 'for Neville' email, which had been produced to us by Gordon Taylor's lawyers."
Scotland Yard chief Paul Stephenson was forced to resign over the investigation.
The Murdoch media empire was nearly buckled by the allegations of phone-hacking and bribes paid to police.