Ebay Slaps Lawsuit On Craigslist!
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EBay.com, a highly popular and huge online auction and shopping website filed a lawsuit against Craigslist, one of the top advertising companies featuring free ads for everything from jobs to services and products to personals, for a network of online communities.
You might wonder how both these popular giants are connected. EBay had acquired 28.4% interest in Craigslist in 2004, making it a minority share holder in Craigslist.
Things do not seem to be fine on the home front. On Tuesday, a lawsuit was filed by eBay against Craigslist, with the Delaware Court of Chancery, in the State of Delaware, which is a forum that resolves disputes between companies registered in Delaware.
According to eBay, the reason behind them filing the lawsuit is that two directors of Craigslist, Craig Newmark and their chief executive, Jim Buckmaster, have unfairly entered into transactions that have diluted eBay’s economic interest in the company by more than 10 percent. EBay alleged that both the directors have breached their fiduciary duties.
EBay is keeping silent on further details about the nature of the transactions entered into by the directors of Craigslist. The reason for the silence is said to be the confidentiality requirement of some of the information given about Craigslist in the complaint, which is filed under seal. (more…)


