NEW YORK, Feb. 24, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of shareholders who purchased or otherwise acquired the securities of SINA Corp. ("SINA" or the "Company") (Nasdaq:SINA) between October 26, 2004 and February 7, 2005, inclusive (the "Class Period"). The action is numbered 05-CV-2374.
The complaint charges SINA, Wang Yan, and Charles Chao, with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company was increasingly relying on services related to "fortune telling" advertising, like horoscopes and astrology, in order to meet its earnings forecasts and generate a positive revenue stream; (2) that the Chinese government had clamped down on "fortune telling" advertising and the resulting clampdown on "fortune telling" advertising would have a material effect on the Company's revenue stream; (3) that China Mobile Communication Corp.'s recent change in its billing process for multimedia messaging services SINA provides to China Mobile subscribers had a material effect on the Company's business; and (4) that as a result of the above, the defendants' positive statements about the growth and prospectus of SINA were lacking in any reasonable basis when made.
On February 7, 2005, after the markets closed, SINA announced its financial results for the fourth quarter and full year ended December 31, 2004. The results and the Company's business outlook shocked the market. Shares of SINA fell $2.96 per share, or 10.82 percent, to close at $24.39 per share on unusually high trading volume.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired SINA securities on any world exchange between October 26, 2004 and February 7, 2005, and sustained damages, you may, no later than April 18, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca