EBay has filed a lawsuit alleging that some changes made by Craigslist's board of directors have diluted eBay's investment in the online classified site.
EBay filed the lawsuit on Tuesday in the Court of Chancery of the State of Delaware, the company said. The complaint was filed under seal because some of the information about Craigslist is governed by confidentiality restrictions, eBay said.
EBay, which acquired a 28.4 percent interest in Craigslist in 2004, didn't provide details about the actions taken by Craigslist's board, but it said that Craigslist CEO Jim Buckmaster and founder Craig Newmark have entered into transactions that have "unfairly diluted eBay's economic interest in Craigslist by more than 10 percent."
Buckmaster and Newmark have breached their fiduciary duties, eBay alleged. An eBay spokeswoman wasn't immediately available for comment.
A Craigslist spokeswoman declined to comment, saying the company would likely issue a statement on its blog later in the day.
"The recent actions by the Craigslist directors have disadvantaged eBay and its investment in Craigslist," Mike Jacobson, eBay senior vice president and general counsel, said in a statement. "Since negotiating our investment with Craigslist's board in 2004, we have acted openly and in good faith as a minority shareholder, so we were surprised by these recent unilateral actions."
- Sponsored Resource:How does your network security compare to those of your peers? Visit the CDW Security Center to find out.
- Sponsored Resource:Learn more about ultra light notebooks from Asus and the best warranty in the industry.
- Sponsored Resource:Thinking about a new Laptop? Lenovo has models to meet everyone's needs.
- Sponsored Resource:Get the truth about remanufactured ink. Learn more from HP.
- Sponsored Resource:Six smart ways to grow small business IT
News For Your Business
- Mafiaboy Grows Up; a Hacker Seeks Redemption
- Google in Curious Alliance With Click-fraud Detection Firm
- PCI App Security: Who's Guarding the Data Bank?
- It Only Seems Like the Only News Is the Economy
- Kernel Developers, Wall Street to Come Together
Community Comments