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.
On February 7, 2005, defendants reported preliminary results that were consistent with their 4th quarter guidance but disclosed for the first time an anticipated sequential revenue decline of 17% to 24% in the first quarter of 2005 and attributed the decline to the Chinese government's ban on fortune-telling advertising and billing changes. In reaction to this news, the Company's share price fell by more than 21%. During the class period, insiders sold Sina shares at artificially inflated prices for proceeds in excess of $31 million.
Seeger Weiss is a New York based firm that is active in major complex litigations and class actions pending in federal and state courts throughout the United States. Seeger Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers and others and has recovered millions of dollars for clients and class members.
If you bought the securities of Sina between October 26, 2004 and February 7, 2005, and sustained damages, you may, not later than April 18, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Seeger Weiss LLP, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact us.