EBay Overturns Craigslist Poison Pill Plan

Law360, New York (September 9, 2010, 7:36 PM EDT) -- EBay Inc. has won its securities dilution suit alleging Craigslist Inc. officers improperly weakened its stake as a minority partner in the online network in response to eBay's launch of rival classified site Kijiji in 2007.

Delaware Chancery Court Judge William B. Chandler III upheld eBay’s contention, deciding that Craigslist officers Jim Buckmaster and Craig Newmark had breached their fiduciary duties to the minority shareholder by watering down eBay's stake in the company and by unfairly blocking it from purchasing additional Craigslist shares.

The ruling overturns...
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