Sina Corp. Cleared Of Class Action Over Fortune-Telling

Law360, New York (September 28, 2006, 12:00 AM EDT) -- A federal court has dismissed a class action securities lawsuit against Chinese media company Sina Corp. after determining its advertising revenue wasn’t as dependant on superstitious advertising as investors claimed.

The lawsuit charged Sina with recklessly using superstition-based companies, such as fortune-tellers, to generate much of its advertising revenue, despite the fact that Chinese authorities were cracking down on such practices.

Investors filed the lawsuit in February 2005, in the U.S. District Court for the Southern District of New York. They accused the Shanghai-based company of...
To view the full article, register now.