Yahoo is dealing with a lawsuit alleging that the agency mismanaged funds put aside to assist jailed Chinese language dissidents.
The fund – greater than $17m (£13.5m ) – was arrange after Yahoo supplied details about political dissidents to the Chinese language authorities.
It appointed a high-profile political activist, Harry Wu, to manage the funds.
The lawsuit alleges that Mr Wu, who died final 12 months, used the cash for different functions.
Mr Wu ran the Washington-based human rights group Laogai Analysis Basis.
The lawsuit claims that in actual fact the funds have been used to combat different authorized instances and to purchase two properties in Washington for the human rights organisation.
Mr Wu spent almost 20 years imprisoned in China earlier than he got here to the US.
In an interview with the New York Occasions earlier than his demise, he stated that his organisation couldn’t get hold of Chinese language visas to verify that these making use of for assist have been bona fide.
The lawsuit accuses Yahoo of “wilfully turning a blind eye” because the activist misspent the cash.
It was filed on behalf of eight activists who’re residing in China and who’ve been jailed for his or her political actions.
The authorized declare alleges that solely $700,000 of the $17.3m settlement fund had reached its meant targets.
The cash was agreed as a part of a settlement of an earlier court docket case, introduced by the political activists who have been jailed after Yahoo gave details about them to the Chinese language authorities.
Yahoo declined to touch upon the present litigation.
Will probably be one more embarrassment for Yahoo, which final 12 months revealed that two main hacks had uncovered the private data of a couple of billion customers.
The agency is because of be acquired by Verizon Communications later this 12 months.