RADNOR, Pa., Feb. 15 2005 – LAWFUEL – The Law News Network — The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United
States District Court for the Southern District of New York on behalf of all
securities purchasers of SINA Corporation (Nasdaq: SINA) (“SINA” or the
“Company”) between October 26, 2004 and February 7, 2005, inclusive (the
“Class Period”).
If you wish to discuss this action or have any questions concerning this
notice or your rights or interests with respect to these matters, please
contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Darren J. Check,
Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
info@sbclasslaw.com.
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.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Schiffrin & Barroway, which prosecutes class
actions in both state and federal courts throughout the country. Schiffrin &
Barroway is a driving force behind corporate governance reform, and has
recovered in excess of a billion dollars on behalf of institutional and high
net worth individual investors. For more information about Schiffrin &
Barroway, or to sign up to participate in this action online, please visit
http://www.sbclasslaw.com.
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 Schiffrin & Barroway, or other
counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Darren J. Check, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
