Seeger Weiss LLP Announces Shareholder Class Action Lawsuit Against Sina Corporation -- SINA
"NEW YORK, March 2, 2005 (PRIMEZONE) -- The law firm Seeger Weiss LLP announces that it filed a class action lawsuit today in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of Sina Corporation ('Sina')(Nasdaq:SINA), between October 26, 2004 and February 7, 2005, inclusive (the 'Class Period'), seeking to pursue remedies under the Securities Exchange Act of 1934 (the 'Exchange Act') against defendants Sina, Wang Yan (CEO, Pres.), and Charles Guowei Chao (CFO).The complaint alleges that Sina is an online media company and 'value-added' information services provider in China and for Chinese communities worldwide. The Company reported robust earnings and revenue growth during the third quarter of 2004 and guided analysts to expect substantial revenue and earnings growth during the fourth quarter as well. The complaint alleges that at the time the defendants made these statements and representations, they knew or recklessly disregarded, and failed to disclose, the very material extent to which the Company's financial performance and prospects were dependent on revenue and earnings derived from SMS (short message services) related to 'fortune-telling' type horoscopes services. The complaint further alleges that defendants knew or recklessly disregarded, and failed to disclose, the very material risk that the Chinese government would shut down radio and television advertisement of such services, thereby preventing Sina from promoting its primary revenue generator. The complaint further alleges that defendants also knew or recklessly disregarded, but failed to disclose, that recent changes to China Mobile Communications Corp. billing process, would have a materially adverse effect on the Company's financial performance."(Read more here)
posted by Monkeyman @ 10:07 PM
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