eBay's Lawsuit Against Craigslist

I know you’re getting bored with all the other eBay is suing craigslist. Tantalizing, isn’t it?

By way of background, eBay bought more than a quarter of craigslist’s stock (28.4%) back in 2004. According to the suit, this January, unnamed “unilateral actions” by founder Craig Newmark, CEO Jim Buckmaster and/or the craigslist company itself diluted eBay’s shares, diminishing the power that eBay should wield by an alleged 10%.

eBay says that the unnamed actions were unethical and unfair, in addition to being a “breach” of the company’s “fiduciary duties.” citing their good history with craigslist, eBay expressed dismay at the recent developments:

[W]e have acted openly and in good faith as a minority shareholder, so we were surprised by these recent unilateral actions.

The suit, filed in a Delaware Chancery Court, is sealed to keep confidentiality restrictions between the companies intact. eBay hopes the court will rescind the January actions.