SAN FRANCISCO: Yahoo, reeling from a growing backlash over human rights and its China operations, has settled a lawsuit that accused it of illegally helping the Chinese government jail and torture two journalists.

The two journalists and a family member sued the company earlier this year after Yahoo HK, Yahoo's wholly owned Hong Kong subsidiary, gave the Chinese authorities e-mail messages containing pro-democracy literature. The jailed journalists alleged in the lawsuit that jailers had tortured them and that Yahoo was responsible.

"While technologically and financially you are giants, morally you are pygmies," Tom Lantos, chairman of the House foreign affairs committee and a California Democrat, said at a hearing.

"They have all crossed a gray ethical line in China with their anything-for-a-buck mentality," Navarro said. "I don't believe that will change without a broader examination of the U.S.-China relationship."