Craigslist calls eBay lawsuit 'unethical'

Craigslist fires back at eBay allegations

A corporate governance lawsuit against Craigslist by eBay seems "unethical" and is unfounded, Craigslist has said.

EBay, a minority shareholder in Craigslist, filed the lawsuit in Delaware's Court of Chancery Tuesday, alleging that Craigslist's board of directors has entered into transactions that have "unfairly diluted eBay's economic interest in Craigslist by more than 10 percent."

EBay didn't release details of the lawsuit. The complaint was filed under seal because some of the information about Craigslist is governed by confidentiality restrictions, eBay said in a news release. But eBay, which has owned a 28.4 percent stake in Craigslist since 2004, alleged that Craigslist CEO Jim Buckmaster and founder Craig Newmark have breached their fiduciary duties.

Craigslist fired back in a blog post. "We are surprised and disappointed by Ebay's unfounded allegations, which came to us out of the blue, without any attempt to engage in a dialogue with us," the blog post said. "Coming from a shareholder that views craigslist as a prime competitor, filing suit without so much as mentioning these assertions beforehand seems unethical, and hints at ulterior motives."

Craigslist has treated eBay fairly as a minority shareholder and will continue to do so, the blog post said. "Ebay has absolutely no reason to feel threatened here -- unless of course they're contemplating a hostile takeover of craigslist, or the sale of Ebay's stake in craigslist to an unfriendly party," it said.

EBay described the unnamed actions of Buckmaster and Newmark as "unilateral." The Craigslist board has "disadvantaged eBay and its investment in Craigslist," a company official said in the eBay news release.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Grant Gross

IDG News Service
Show Comments


James Cook University - Master of Data Science Online Course

Learn more >


Victorinox Werks Professional Executive 17 Laptop Case

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?