Milberg Weiss Announces The Filing Of A Class Action Suit Against SINA Corp. And Certain Of Its Officers and Directors On Behalf of Investors Friday February 18, 4:05 pm ET
NEW YORK--(BUSINESS WIRE)--Feb. 18, 2005--The law firm of Milberg Weiss Bershad & Schulman LLP announces that a class action lawsuit was filed on February 18, 2005, on behalf of purchasers of the securities of SINA Corp. ("SINA" or the "Company") (Nasdaq: SINA - News) 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"). The action, numbered 05 cv 2268 is pending before Judge Kimba M. Wood in the United States District Court for the Southern District of New York against defendants SINA, Wang Yan (CEO, Pres.), and Charles Guowei Chao (CFO). A copy of the complaint is available from the Court, or can be viewed on Milberg Weiss's website at: http://www.milbergweiss.com
The complaint alleges that SINA is an online media company and "value-added" information services provider for Chinese communities worldwide that 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 further alleges that defendants knew or recklessly disregarded, but failed to disclose, the very material extent to which the Company's financial performance and prospects were dependent on revenue and earnings derived from fortune-telling type services, and that defendants knew or recklessly disregarded, but failed to disclose, the material risk that the Chinese government would shut down radio and television advertisement of such services, thereby preventing effective promotion of SINA's primary revenue generator. The complaint further alleges that defendants also knew or recklessly disregarded, but failed to disclose, that recent changes to the billing process, instituted by China Mobile Communications Corp., would have a materially adverse effect on the Company's financial performance.
The truth began to emerge on February 7, 2005. On that date, defendants reported preliminary results that were consistent with their 4th quarter guidance but gave the investment community a big and disappointing surprise when they disclosed an anticipated sequential revenue decline of 17% to 24% in the first quarter of 2005 and attributed the decline to the 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.
If you bought the securities of SINA between October 26, 2004 and February 7, 2005, and sustained damages, you may, no later than April 18, 2005, request that the Court appoint you as lead plaintiff. 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 Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad & Schulman LLP (http://www.milbergweiss.com) is a firm with over 100 lawyers with offices in New York City, Los Angeles, Boca Raton, Delaware, Seattle and Washington, D.C. and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for nearly 40 years. Please contact the Milberg Weiss website for more information about the firm. 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 attorneys:
Steven G. Schulman Peter E. Seidman Andrei V. Rado One Pennsylvania Plaza, 49th fl. New York, NY, 10119-0165 Phone number: (800) 320-5081 Email: sfeerick@milbergweiss.com Website: http://www.milbergweiss.com
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