EBay Targets Craigslist In Suit Over Stake Dilution

Law360, New York (April 22, 2008, 12:00 AM EDT) -- EBay Inc. has sued Craigslist, accusing its board of directors of diluting the Internet auctioneer’s 28.4% stake in the classified-listings Web site.

EBay brought the suit under seal in the Delaware Chancery Court, the company said Tuesday. It alleges that Craigslist founder Craig Newmark and Chief Executive Officer Jim Buckmaster made recent transactions that unfairly diluted eBay’s minority stake in the company by more than 10%.

Ebay acquired 28.4% of the equity in Craigslist from a former shareholder for an undisclosed amount in August 2004 and...
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