NGN’s 296-word statement, read out before Justice Fancourt at the High Court, marked the first time NGN has admitted unlawful activity at the Sun.
It also included an apology for the intrusion into the life of his late mother, Diana, Princess of Wales.
The statement said: “NGN offers a full and unequivocal apology to the Duke of Sussex for the serious intrusion by The Sun between 1996 and 2011 into his private life, including incidents of unlawful activities carried out by private investigators working for The Sun.
“NGN also offers a full and unequivocal apology to the Duke of Sussex for the phone hacking, surveillance and misuse of private information by journalists and private investigators instructed by them at the News of the World.
“NGN further apologises to the Duke for the impact on him of the extensive coverage and serious intrusion into his private life as well as the private life of Diana, Princess of Wales, his late mother, in particular during his younger years.
“We acknowledge and apologise for the distress caused to the Duke, and the damage inflicted on relationships, friendships and family, and have agreed to pay him substantial damages. It is also acknowledged, without any admission of illegality, that NGN’s response to the 2006 arrests and subsequent actions were regrettable.”
NGN also offered a “full and unequivocal apology” to the other last remaining claimant, Lord Watson, the former Labour deputy leader, for the unwarranted intrusion carried out into his private life during his time in Government by the News of the World.
Justice Fancourt expressed frustration the deal had been done just as the 10-week trial was due to start.
He said: “It is obviously regrettable that the agreement was only reached at a very late stage after the trial was due to start and after huge resources were dedicated to these very complex claims.”
Although NGN’s apology referred to private investigators working for the Sun, it did not include any admission of wrongdoing by journalists and executives.
The statement was billed as a “monumental victory” for the Duke; it will be seen as a significant climbdown after years of insisting he wanted corporate heads on a plate.
Sherborne had alleged Rupert Murdoch was involved in the cover-up of the true extent of hacking and illegal activity at his newspaper group, while also accusing Rebekah Brooks, CEO of News UK and a former News of the World editor, of lying to the Leveson Inquiry.
The barrister wanted to amend his case to make specific allegations about the “destruction and concealment” of evidence carried out by certain individuals, listing some 150 private investigators, as well as journalists and executives.
In the event, while the duke secured apologies concerning hacking and the response to arrests at the News of the World; he did not get the admissions of liability he had sought from the Sun.