The company is guilty of 'an act of corporate irresponsibility', according to Morton Sklar, executive director of World Organization for Human Rights USA, one of the groups behind the lawsuit.

"Yahoo had reason to know that if they provided China with identification information that those individuals would be arrested."

The lawsuit, filed under the Alien Tort Claims Act and the Torture Victims Protection Act, is believed to be the first ever against an Internet company for its activities in China.

Wang Xiaoning, his wife, Yu Ling and other unnamed defendants seek damages and an injunction barring Yahoo from identifying dissidents to Chinese authorities.

“Companies doing business in China are forced to comply with Chinese law,” said Jim Cullinan, a Yahoo spokesman.

“Yahoo China will not know whether the demand for information is for a legitimate criminal investigation or is going to be used to prosecute political dissidents.”

The company's stance infuriates Yu Ling, one of the plaintiffs involved in the lawsuit.

"The Yahoo company didn't even say sorry," she said.

"They think they haven't done anything wrong."