The San Jose, Calif.-base online auctioneer issued a press release saying a judge in the Delaware Court of Chancery had ruled in Ebay's favor in the shareholder suit filed against Craigslist and its founders, Jim Buckmaster and Craig Newmark.
"The ruling overturns a series of unlawful transactions undertaken by Craigslist's majority shareholders to dilute eBay's minority share in the company," Ebay said in its statement, adding that: "The ruling rescinds a poison pill and right of first refusal adopted by the controlling shareholders in January 2008 and restores eBay's 28.4 percent share in Craigslist."
Specifically, Ebay said the judge found that Buckmaster and Newmark had "breached their fiduciary duty of loyalty" with their actions.Shares of Ebay ticked higher in afterhours action, most recently changing hands at $24.41. Based on Thursday's regular session close at $24.30, Ebay shares were up about 4.4% so far in 2010. --Written by Michael Baron in New York.
>To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: email@example.com
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV