If all dictionary publishers were sued for errors of lexicography, then there’d be no dictionaries left. Of course, this fellow in China is suing the bookstore where he bought his copy of the Xinhua Dictionary and not the publisher. “It is too troublesome for me to file a lawsuit in Beijing where the press is located. So I bought a Xinhua Dictionary in the book city and chose it as the defendant, hoping the press will get involved in this way.”
Shanghai Book City (Shanghai Shucheng) is the name of very large retail book store and not an actual city devoted to books. This is its web site, I believe.