One week after being labeled moral “pygmies” in a House hearing, Yahoo settled a lawsuit brought by two Chinese journalists jailed when the Internet giant turned over their personal data to Beijing. The two men, now serving 10-year sentences on charges of leaking state secrets, sued Yahoo for providing the Chinese government with their emails and addresses. Terms of the settlement were not disclosed.
As part of the deal, Yahoo—which initially said it was merely complying with Chinese law—pledged to create a humanitarian relief fund for other political dissidents. The House hearing tipped the scales, “causing too much embarrassment” for Yahoo, said a spokesman for the human rights group that filed the suit. China has jailed more than 200 Internet users under similar circumstances, he said.