EBay files governance lawsuit against Craigslist
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."
IDG News Service
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