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<blockquote data-quote="w hole" data-source="post: 54" data-attributes="member: 175048">Further update from the Grauniad:Analysts have reacted negatively to the NDS scandal, warning that the legal battle looming over the Rupert Murdoch-owned technology firm could turn investors against the company.Analysts at Morgan Stanley said a £700m lawsuit brought against NDS by the French pay-TV group Canal Plus posed questions about the company's integrity.&quot;The Canal Plus claims are serious as they question NDS's integrity and business practices. We anticipate prolonged legal procedures before being able to assess the potential impact (if any) on NDS,&quot; Morgan Stanley said.NDS, which is controlled by Mr Murdoch's News Corporation, has been accused of breaking the viewer access codes used by rival pay-TV operators and then handing the information to counterfeiters through a website.ITV Digital claims it has lost £100m as a result, with 100,000 fake smart cards flooding the market. Morgan Stanley said there was no sign of an immediate impact on NDS's business, but the sheer weight of bad publicity from the scandal could affect the UK-based company.&quot;We think the lawsuit will limit upside for investors. We do not foresee any impact on NDS's ongoing business for the time being but we are, at this stage, more concerned about the sentiment impact,&quot; he said.Morgan Stanley downgraded NDS to &quot;neutral&quot; from &quot;outperform&quot;. The Canal Plus allegations, which have been denied by NDS, have already hit the technology company's share price, which tumbled 26% in New York yesterday.A News Corporation spokesman dismissed fears that the NDS furore will affect Rupert Murdoch's media group.&quot;This will be shown to be a load of bunk, so I don't think it will affect us at all,&quot; he said.RegardsW.H.</blockquote>

[QUOTE="w hole, post: 54, member: 175048"] Further update from the Grauniad: Analysts have reacted negatively to the NDS scandal, warning that the legal battle looming over the Rupert Murdoch-owned technology firm could turn investors against the company. Analysts at Morgan Stanley said a £700m lawsuit brought against NDS by the French pay-TV group Canal Plus posed questions about the company's integrity. "The Canal Plus claims are serious as they question NDS's integrity and business practices. We anticipate prolonged legal procedures before being able to assess the potential impact (if any) on NDS," Morgan Stanley said. NDS, which is controlled by Mr Murdoch's News Corporation, has been accused of breaking the viewer access codes used by rival pay-TV operators and then handing the information to counterfeiters through a website. ITV Digital claims it has lost £100m as a result, with 100,000 fake smart cards flooding the market. Morgan Stanley said there was no sign of an immediate impact on NDS's business, but the sheer weight of bad publicity from the scandal could affect the UK-based company. "We think the lawsuit will limit upside for investors. We do not foresee any impact on NDS's ongoing business for the time being but we are, at this stage, more concerned about the sentiment impact," he said. Morgan Stanley downgraded NDS to "neutral" from "outperform". The Canal Plus allegations, which have been denied by NDS, have already hit the technology company's share price, which tumbled 26% in New York yesterday. A News Corporation spokesman dismissed fears that the NDS furore will affect Rupert Murdoch's media group. "This will be shown to be a load of bunk, so I don't think it will affect us at all," he said. Regards W.H. [/QUOTE]

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