NEW YORK, March 30, 2005 (PRIMEZONE) -- Wechsler Harwood LLP today announces that a securities class action lawsuit has been filed on behalf of shareholders who purchased the common stock and other securities of SINA Corporation ("SINA" or the "Company") (Nasdaq:SINA) between October 26, 2004 and February 7, 2005 inclusive (the "Class Period"). The complaint, Civ. A. No. 05cv2391, was filed in the United States District Court for the Southern District of New York. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood's web site at: www.whesq.com.
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, CEO and President of the Company, Wang Yan, and Chief Financial Officer and Co-Chief Operating Officer, Charles Chao, 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.
If you are a member of the class described above, 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 Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. 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 the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca