EBay Wins Round in Battle With Craigslist

EBay wins a round in court against Craigslist

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    AFP/Getty Images
    Posed photo shows a visitor grabbing the logo of internet auction house Ebay at the trade fair for digital marketing OMD, 25 September 2007 in Dusseldorf. The fair, Germany's leading of its kind with 180 exhibitors, is open 25 and 26 September. AFP PHOTO DDP/MICHAEL GOTTSCHALK GERMANY OUT (Photo credit should read MICHAEL GOTTSCHALK/AFP/Getty Images)

    A judge has ordered Craigslist to reverse two moves it made that hurt one of its biggest investors -- eBay.

         The moves diluted eBay Inc.'s share of the company, bought in 2004, and made it harder for eBay to sell the interest and to name a director to Craigslist's board.      Those changes were made after eBay's growing challenge of Craigslist's position in online classifieds led to a falling out.
         EBay sued in 2008. A nine-day trial was held last year.
         On Thursday, a judge in Delaware's Court of Chancery ruled that Craigslist founder Craig Newmark and CEO Jim Buckmaster breached their fiduciary duties to eBay with the first two moves, and must rescind them.
         The judge is letting stand the Craigslist move changing the naming of directors.