Former British royal SARAH FERGUSON, musician JAMES BLUNT, and singer-turned-reality TV star KERRY KATONA have accepted "substantial" damages from RUPERT MURDOCH's newspaper company over the phone hacking scandal.

The Duchess of York, who was previously married to Prince Andrew, launched a lawsuit in September (12), joining dozens of other public figures suing News International over the outrage.

On Friday (08Feb13), a hearing at London's High Court was told several stars, including Ferguson, Blunt, and former Atomic Kitten singer Katona have now settled their case for an undisclosed sum in damages. Lawyers for the company offered "sincere apologies" to victims of the hacking.

The scandal erupted in 2011 after it emerged a private investigator working for British tabloid the News of the World had intercepted voicemail messages on the cell phones of hundreds of celebrities. The newspaper was subsequently closed down.

High-profile victims including actors Hugh Grant and Jude Law, and singer Charlotte Church, have already settled their cases with the newspaper.