The Delaware Court of Chancery has ruled in eBay’s favor in the shareholder suit filed against Craigslist. According to a press release issued by eBay today, “the ruling overturns a series of unlawful transactions undertaken by Craigslist’s majority shareholders to dilute eBay’s minority share in the company.”

Chancellor William B. Chandler found that “Jim [Buckmaster] and Craig [Newmark] breached their fiduciary duty of loyalty by using their power as directors and controlling stockholders to implement an interested transaction that was not entirely fair to eBay, the minority stockholder.”

“We are very pleased that the Court gave eBay what it sought from the lawsuit,” said Michael R. Jacobson, eBay general counsel. “eBay brought this suit to protect its own shareholders and preserve its valuable investment in Craigslist. The evidence presented at trial demonstrated that the actions were taken by Mr. Buckmaster and Mr. Newmark to benefit themselves at the expense of eBay, and we are gratified that the Court recognized these actions were both unfair and unlawful and rectified the situation.”

I’ll update this post with any information if and when it becomes available.

Cheers,
RBH