We use cookies to provide you with a better experience. If you continue to use this site, we'll assume you're happy with this. Alternatively, click here to find out how to manage these cookies

hide cookie message
78,797 News Articles

eBay files lawsuit against Craigslist

Craigslist's board accused of diluting investment

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.

"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 UK Sites

Google Fit vs Apple Health Kit: What's the difference?

IDG UK Sites

How to join Apple's OS X Beta Seed Program: Get OS X Yosemite on your Mac before public release

IDG UK Sites

Introducing generation tech

IDG UK Sites

Government kills £50 million 'Silicon Roundabout' regeneration fund