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8 April 2011
Last updated at 11:32 ET
The News of the World's owner has said sorry over the phone hacking scandal and is to set up a compensation fund.
News International says, in some cases, it will apologise and admit liability. The BBC understands it hopes to pay out less than £20m in total to victims including actress Sienna Miller.
A lawyer for some alleged victims said it was a "step in the right direction".
A News of the World reporter and an ex-news editor were arrested and bailed earlier this week over the allegations.
The BBC's business editor Robert Peston called it an "absolutely dramatic development" and said the company believed most claims would be settled for less than £100,000 each.
'Genuine regret' There are 24 active cases and they include claims of breach of privacy brought by the film star Sienna Miller, former culture secretary Tessa Jowell, football commentator Andy Gray and the designer Kelly Hoppen.
News International, which also owns the Times and Sun newspapers, said it had asked its lawyers to "establish a compensation scheme with a view to dealing with justifiable claims fairly and efficiently".
"Past behaviour at the News of the World in relation to voicemail interception is a matter of genuine regret," it said in a statement.
"It is now apparent that our previous inquiries failed to uncover important evidence and we acknowledge our actions were not sufficiently robust."
News International, which is owned by Rupert Murdoch, said it would continue to co-operate with the Metropolitan Police inquiry.
On Tuesday, the News of the World's chief reporter Neville Thurlbeck, 50, and former news editor Ian Edmondson, 42, were arrested on suspicion of having unlawfully intercepted voicemail messages. There were released on bail until September.
The latest arrests are the first since the Met Police reopened its inquiry - known as Operation Weeting - into claims that staff at the Sunday tabloid had hacked into the phone messages of celebrities and other public figures.
'Mea culpa' In 2007, the first police investigation into phone hacking led to the convictions and imprisonment of then News of the World royal editor Clive Goodman and private investigator Glenn Mulcaire, who was employed by the paper.
Four alleged victims have reached out-of-court settlements with the newspaper, including celebrity publicist Max Clifford, who received a reported £1m.
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Mr Clifford said the News of the World's latest offer for other victims was the "right thing to do".
"They have conducted a thorough investigation and police are conducting one which they should have done a few years ago," he said.
Mark Lewis, a solicitor involved in several of the current cases, told the BBC the paper's apology was a "step in the right direction".
"Offers will have to be looked at and considered, but they should have done this in the first place," he said.
Former Sunday Times editor and broadcaster Andrew Neil said it was a "complete mea culpa".
"They are trying to close it down with their cheque book but I don't think it will succeed," he told the BBC.
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News International says, in some cases, it will apologise and admit liability. The BBC understands it hopes to pay out less than £20m in total to victims including actress Sienna Miller.
A lawyer for some alleged victims said it was a "step in the right direction".
A News of the World reporter and an ex-news editor were arrested and bailed earlier this week over the allegations.
The BBC's business editor Robert Peston called it an "absolutely dramatic development" and said the company believed most claims would be settled for less than £100,000 each.
'Genuine regret' There are 24 active cases and they include claims of breach of privacy brought by the film star Sienna Miller, former culture secretary Tessa Jowell, football commentator Andy Gray and the designer Kelly Hoppen.
News International, which also owns the Times and Sun newspapers, said it had asked its lawyers to "establish a compensation scheme with a view to dealing with justifiable claims fairly and efficiently".
"Past behaviour at the News of the World in relation to voicemail interception is a matter of genuine regret," it said in a statement.
"It is now apparent that our previous inquiries failed to uncover important evidence and we acknowledge our actions were not sufficiently robust."
News International, which is owned by Rupert Murdoch, said it would continue to co-operate with the Metropolitan Police inquiry.
On Tuesday, the News of the World's chief reporter Neville Thurlbeck, 50, and former news editor Ian Edmondson, 42, were arrested on suspicion of having unlawfully intercepted voicemail messages. There were released on bail until September.
The latest arrests are the first since the Met Police reopened its inquiry - known as Operation Weeting - into claims that staff at the Sunday tabloid had hacked into the phone messages of celebrities and other public figures.
'Mea culpa' In 2007, the first police investigation into phone hacking led to the convictions and imprisonment of then News of the World royal editor Clive Goodman and private investigator Glenn Mulcaire, who was employed by the paper.
Four alleged victims have reached out-of-court settlements with the newspaper, including celebrity publicist Max Clifford, who received a reported £1m.
Please turn on JavaScript. Media requires JavaScript to play.Mr Clifford said the News of the World's latest offer for other victims was the "right thing to do".
"They have conducted a thorough investigation and police are conducting one which they should have done a few years ago," he said.
Mark Lewis, a solicitor involved in several of the current cases, told the BBC the paper's apology was a "step in the right direction".
"Offers will have to be looked at and considered, but they should have done this in the first place," he said.
Former Sunday Times editor and broadcaster Andrew Neil said it was a "complete mea culpa".
"They are trying to close it down with their cheque book but I don't think it will succeed," he told the BBC.
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