The publisher of The Sun has agreed to pay "substantial compensation" and apologize to the Duke of Sussex to resolve a long-running legal dispute over his illegal intrusion into his life.

Prince Harry claims News Group Newspapers (NGN) reporters and private investigators used illegal means to pry into his private life and executives then covered it up.

In a statement read out in court, NGN apologized for the "serious intrusion" at The Sun between 1996 and 2011 and acknowledged that "incidents of illegal activity" were carried out by private investigators working for the newspaper.

It also apologized for the distress caused to Harry by "extensive publicity" and "serious intrusions" into the private life of his late mother, Princess Diana.

The BBC understands that the settlement with Prince Harry and former Labor deputy leader Lord Tom Watson has cost NGN more than £10 million in expenses and legal fees.

In total, NGN has cost NGN more than £1 billion in damages and costs to those who claimed their phones had been hacked and their privacy breached by the News of the World and The Sun.

When the prince made his claim, he claimed that more than 200 articles published by NGN between 1996 and 2011 contained information gathered through illegal means.

He has repeatedly said he wants the case to go to trial so he can be "accountable" to other alleged victims of illegal newsgathering.

A source told the BBC that NGN was "surprised that Prince Harry has seriously pursued a resolution in recent days".

A source close to the Duke of Sussex responded that the apology "provides all the insight you need".

Speaking outside court on his behalf, Prince Harry's lawyer David Sherborne called the settlement a "landmark victory" and said NGN was "finally prosecuted for its unlawful conduct and blatant disregard for the law." Hold accountable."

Lord Watson, meanwhile, claims his phone was hacked while he was investigating a newspaper owned by Rupert Murdoch when he was an MP, at the height of his powers. phone hacking scandal About 15 years ago.

NGN also apologized to Lord Watson for intrusions into his private life by News of the World staff, including "surveillance" by journalists and those they directed.

NGN said in a statement that its settlement "clears a break with the past" and "puts an end to this litigation."

It added: "Lord Watson's phone was not hacked in 2009-11 and if this matter went to trial NGN would call evidence from telecoms experts to show that as a result of security upgrades carried out by the telecoms company after 2007 Hacking is almost impossible."

The statement said the apology also related to illegal activities carried out by a private investigator who worked for The Sun between 1996 and 2011 but "was not a journalist".

The reference to The Sun in the apology was key, without which the prince would not have reconciled.

NGN has apologized for unlawful conduct at the now-defunct News of the World but has previously denied similar allegations against The Sun, as well as Prince Harry's wider accusations of a company-wide cover-up.

While NGN did not admit any wrongdoing, it admitted in its apology that its response to the arrest of News of the World staff in 2006 for hacking royal and celebrity phones and its subsequent actions was "regrettable" ".

Journalist Clive Goodman and private investigator Glenn Mulcair were later jailed for intercepting voicemails on the phones of the prince's aides.

After the settlement was announced, Lord Watson told reporters: "I hope they leave my family alone. Today I'm delighted they have finally accepted responsibility."

He described the snooping by NGN staff as "on an industrial scale" and said its owner Rupert Murdoch should offer a "personal apology" to Prince Harry and anyone else affected.

Lord Watson added that the legal team behind the case would submit a dossier to the Metropolitan Police.

A Met spokesman said they were aware of the outcome of the case, adding that "there are no active police investigations into allegations of phone hacking or related matters".

By agreeing to the settlement, NGN avoided eight weeks of slowly unraveling allegations.

Now, courts will not hear claims that executives deliberately obstructed justice by deleting emails and engaging in a cover-up of evidence. NGN "strongly denies" this.

And there will be no damaging headlines about media intrusion into the heart of the royal family and government.

Former Sun editor Kelvin McKenzie said there would be "huge damage" if the company's chief executive Rebecca Brooks was forced to give evidence at a trial.

He told BBC Radio 4's The World at One program that he was "surprised" by NGN's admission in the statement.

"The day will come and Prince Harry is pursuing it. (NGN) are at a disadvantage and there may not be much they can do."

Culture Secretary Lisa Nandy said it was a "big day and a huge relief" for the two claimants.

She told The World At One she didn't believe it Leveson Phase II Survey of Journalistic Practices "Fit for purpose", but said families from the Hacked Off campaign group were preparing a "comprehensive brief" on the changes they believed were needed.

She said the government must work with families and the media to ensure "we strike the right balance and protect a free and fair press".