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: firstname.lastname@example.org
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
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
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts