Yahoo rows with former manager

Zhou Hongyi has filed a 3.6-million yuan ($450,000) defamation suit against his former employers claiming that the outfit defamed him in a press conference.

Yahoo China general manager Tian Jian accused Zhou in a press conference of unethical business practices, he said. Ironically the press conference was to say that Yahoo is also considering legal action against Zhou and would not use companies invested in or related to him.

Yahoo called on others to follow its lead to create "a better understanding of the importance of morality in this industry, and restoring the industry's environment to excellence."

Yahoo claims that Zhou poached more than 100 of its staff when he set up a rival outfit called Qihoo.

Before he left, it's alleged that Zhou apparently doled out huge bonuses to Yahoo employees, something that many consider as an attempt to buy loyalty. Zhou said the people he gave the cash to were longtime Yahoo employees, and they were under no obligation to follow him.

Yahoo claims that Zhou's new outfit produces anti-malware software that deliberately disables Yahoo Assistant. Yahoo Assistant was installed as a product in Yahoo by Zhou when he was in charge but was hard to get rid of. It lead to Zhou being dubbed the "King of Malware".

Zhou said that in removing it he was “atoning for his sins” from the days when he ruled Yahoo. More at Red Herring . µ