A lawsuit accused Yahoo of breaking a financial promise it made to Chinese dissidents almost a decade ago as penance for helping the Chinese government find and jail other activists.
The complaint, filed Tuesday in a Washington, D.C., federal court by a group of Chinese dissidents, contends that Yahoo mismanaged a $17 million fund set up to provide financial aid to activists.
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Yahoo created the human rights fund in 2007, days after U.S. legislators roasted the company for providing authorities with information that led to the imprisonment of two Chinese dissidents, Wang Xiaoning and Shi Tao.
The complaint alleges that Yahoo allowed Harry Wu, a...