The store – more than $17m (£13.5m) – was set up after Yahoo gave data about political free thinkers to the Chinese government.
It relegated an unmistakable political lobbyist, Harry Wu, to control the advantages.
The claim affirms that Mr Wu, who passed on a year back, utilized the cash for different purposes.
Mr Wu ran the Washington-based human rights add up to Laogai Research Foundation.
The claim expresses that in actuality the advantages were utilized to battle other honest to goodness cases and to purchase two properties in Washington for the human rights connection.
Mr Wu spent practically two decades kept in China before he went to the US.
In a meeting with the New York Times before his passing, he said that his association couldn’t get Chinese visas to demand that those applying for cause were true blue.
The claim blames Yahoo for “wilfully turning an apparently weakened eye” as the lobbyist squandered the cash.
It was recorded in light of a true blue sympathy toward eight activists who are living in China and who have been confined for their political exercises.
The legitimate case charges that tip top $700,000 of the $17.3m settlement support had achieved its masterminded targets.
The cash was concurred as an important piece of a settlement of a prior court case, brought by the political activists who were confined after Yahoo gave data about them to the Chinese government.
Yippee declined to remark on the present suit.
It will be yet another shame for Yahoo, which a year back uncovered that two imperative hacks had uncovered the individual data of more than one billion clients.
The firm is depended upon to be obtained by Verizon Communications in the near future.