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Thu Dec 3 2009 22:53:13

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

By: Ina Steiner

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eBay founder Pierre Omidyar and former eBay CEO Meg Whitman will square off against Craigslist founder Craig Newmark in a trial slated for next week. eBay, which acquired more than a quarter of the popular, mostly-free classifieds site in 2004, filed a corporate governance lawsuit complaining that in January of 2008, Newmark and Craigslist CEO Jim Buckmaster adopted measures that, "among other things, unfairly diluted eBay's economic interest in Craigslist by more than 10 percent. By taking these unilateral actions, eBay believes that Newmark and Buckmaster breached their fiduciary duties in violation of Delaware corporate law."

The trial is set for December 7, 2009 before the Court of Chancery of the State of Delaware. Bloomberg reported Thursday that Meg Whitman is scheduled to be the first witness to testify in next week's trial.

eBay acquired a 28 percent share of the Craigslist online classified site in 2004, and then proceeded to launch its own competing classifieds site Kijiji in 2005. It has been less than a "marriage made in heaven," and things came to a head when eBay launched Kijiji in the U.S. in 2007.

Craigslist filed a lawsuit against eBay last year charging the company with "unlawful and unfair competition, misappropriation of proprietary information, deceptive passing-off, business interference, false advertising, phishing attacks, free-riding, trademark infringement, trademark dilution, and breaches of fiduciary duty."

A source said eBay is close to renaming Kijiji in the U.S., "eBay Classifieds" - eBay had revealed earlier this year that it was running localized tests.

Ms. Whitman is running for governor of California, and how the trial will affect her campaign remains to be seen.

See "CraigsList vs. eBay: No Kumbaya in Kijiji-ville" (AuctionBytes Blog,  May 20, 2008) - link.




Comments (18) | Permalink

Readers Comments

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: ebay Nonsense

Fri Dec 4 00:00:45 2009

I read the suit that Craigslist brought against ebay and all I could think of was - did ebay think they were above the law?
Morals and ethics isn't in their vocabulary.  

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: meg whitman is a moron

Fri Dec 4 00:19:41 2009

Seriously? Margaret Nitwhit and Pierre think they have a leg to stand on?

Look, Pierre, we know you lied about the Pez thing... stop it already.

This is clearly another one of those ''I have more money than you do, so I'll tie you up in court until you have to fold'' circumstances.

Who in their right mind would deal with (as in pay) someone as corrupt as ebay for anything?

Not me.

VOTE NO FOR NITWHIT IN CALIFORNIA

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: BTW

Fri Dec 4 00:25:04 2009

Everyone I talk with in my old home state says meg whitman is the laughing stock of So Cal... I'm sorry, you registered to vote WHEN??? lmao!

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

This user has validated their user name. by: Ming the Merciless

Fri Dec 4 02:01:45 2009

How can one state be so lucky?

First, California is treated to a Meg Whitman gubernatorial candidacy and now another equally amoral former female CEO, Carly Fiorina, has announced for the US Senate.

You'll recall that Carly got caught after she hired private detectives to spy on Hewlett Packard's Board members.

Incompetence abounds.

You could put both of their ethical systems in a flea's navel and have enough room left over for a Republican elephant.

NEG MEG WHITMAN in 2010.




eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: Marvin

Fri Dec 4 04:44:08 2009

Wonder if testimony will reveal ebay using inside information to spam craigslist postings for responses to get emails they could compare against ebay user email addresses to determine which ebay users were using craiglist? Will they testify ebay spreading rumors to make craiglist look bad?

How much credibility will meg and pierre's testimony carry when a current survey in progress shows 95% think ebay is not honest and 90% think they lie.

The bloomberg article link states ebay ''is the most- visited e-commerce site in the world'' but traffic data provided by alexa.com shows Amazon, not ebay is the most visited.

Leaves one to wonder if the government or news media will ever accept the truth and see ebay for what it truly is.

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: Hardrock Rules

Fri Dec 4 07:54:11 2009

Dear Meg, do you really think the eBay members in CA who you let your handpicked buddy John Donahoe destroy the last 2 years are going to vote for you ? Or encourage others they know to vote for you ?

Meg, you got rich from the small to medium sellers, and walked away picking John Donahoe to destroy or business's or at least put as major dent in our income, DON'T UNDERESTIMATE the number of CA eBay bidders who will vote against you most likely, and spread the good word to their friends and family also

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: Craig is no Angel

Fri Dec 4 09:38:37 2009

I have no love lost for eBay, but Craig Newmark and Jim Buckmaster are hardly innocent in this case. If eBay had swindled them out of their stocks, I could excuse a retaliatory dilution of eBay's shares in craigslist. But, Newmark and Buckmaster made $16 mil from that sale.  

This pretty much sums it up from Huffington Post:

"Remember this whenever you see Craig Newmark pull his "I'm-just-a-customer-service-rep" act. Remember this when Buckmaster says Craigslist only cares about its customers. Because, like the rest of Silicon Valley, they're all about the money. Unlike the rest of you, they're just better at hiding it."

http://valleywag.gawker.com/283002/craig-newmark-filthy-ri
ch-on-ebays-millions

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: Patricia

Fri Dec 4 10:51:15 2009

Believe it or not Meg is a front runner here in California :-(  We're overrun with a bunch of longtime democratic legislators who think they are living in Neverland and us taxpayers are a bottomless pit of money!  I guess Californians are a gullible bunch which is why this state is in such a mess.  I know everytime I hear Meg's commercial about how she created thousands of jobs for us little people I just want to puke!  I'm hoping some of the other runners will publicize themselves soon but none of them can match Meg's money....she's buying her way to the governor's seat.

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: nora

Fri Dec 4 11:45:22 2009

I'd love to see this on Court TV.

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: goldi

Sat Dec 5 23:07:10 2009

@Craig is no Angel:

The link you provided as proof of your allegations leads to nothing more than unsubstantiated trash talk from some anonymous writer with an obvious agenda. The fact that you would parrot it here - and who knows where else this topic has been discussed - makes me suspect that you also have an agenda.

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: Deb

Sun Dec 6 00:18:01 2009

I have bought off of Craigslist and since it is local,I can see the merchandise. When I buy, I save on shipping.  Will the shipping and postage companies be sueing Craigslist next for taking their profit?  Another one of those I thought of it first and I don't want you to play in the same yard as me deals.  I also have no love for ebay since an item I looked at was on their site and then removed.  The problem is they did not inform me the item had been removed and it was a scam which cost me in the thousands.  When I talked to eBay they were no help and only sent form emails back to me.  At least if I was buying it off Craigslist I could have gone and looked at the item before I purchased it.  GROW up eBay and everyone else who thinks they have the right to tell me where I can purchase things.  And if you got my email address off Craigslist to compare it to you, you violated my rights and I should sue you for that!

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: On Lies and Secrets

Sun Dec 6 11:43:59 2009

It is interesting to see some discussion questioning the ethics of Craigslist ownership when it is my understanding that some ebay shareholders themselves have actually filed suit against Meg Whitman in the past.  According to an article appearing in the Sacramento Bee:

''They [ebay shareholders] had sued Whitman, a few other eBay executives and Goldman Sachs in a civil case in Delaware Chancery Court. In court documents, they accused Whitman and others of profiting personally from IPO stock deals that should have been eBay's opportunities, breaching their fiduciary duties and duty of loyalty to eBay.''  

http://www.sacbee.com/politics/story/1887681.html

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

This user has validated their user name. by: Ming the Merciless

Sun Dec 6 16:24:52 2009

Ina's trial coverage -- provided the case isn't settled -- should give us a large snapshot of just how corrupt and mega greedy ebafia is and always has been.

What ebafia can't outright steal, they use devious and unscrupulous strategies to achieve their goals by silencing their critics and eliminating their perceived competition BY ANY MEANS NECESSARY.

Ebafia's purchase of 28% of Craig's List stock was nothing less than a strategic raiding expedition designed to put Craig's List out of business one way or another for the purpose of enhancing ebafia's profitability.

With a seat on the Board, ebafia could have stolen even more proprietary information than they did to incorporate within their Kijiji business model with the objective of putting Craig's List out of business.

When Craig's List's agile response denied the seat on the CL BoD that ebafia believed it deserved, ebafia then sued claiming that Craig's List wasn't making as much money as ebafia thought they should be.

In other word's, Craig's List wasn't $crewing over their customers as much as ebay thought they should be. Being the experts in this area, this is how ebafia defines a breach of fiduciary responsibility.

From our collective experiences with ebafia, the allegations Craig's List has made against efabia are quite likely all true:

"unlawful and unfair competition, misappropriation of proprietary information, deceptive passing-off, business interference, false advertising, phishing attacks, free-riding, trademark infringement, trademark dilution, and breaches of fiduciary duty."

We should all recognize these tactics because they're exactly what ebafia has done to its sellers. And to this list I would add numerous Sherman Anti Trust and Clayton Act violations.

Maybe the guys who run Craig's List aren't angels, but they're minor leaguers compared to the amoral criminal sociopaths who run ebafia.

DEATH to ebay corp. in 2009.

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: BOWHUNTER

Sun Dec 6 18:11:30 2009

It looks as though feebay is involved in yet another lawsuit where they will try and act as GOLIATH and devour their opposition and feed them to the fouls of the air.EBAY!!you had better have a search of Craig Newmarks pockets when he enters the court room and make sure that he don't have a sling and five smooth stones hidden away and by the way I wouldn't think that metal detectors will detect stones.''IT IS MY WISH THAT EBAY WILL NOT PROFIT FROM THIS CASE''--- 14 MONTHS WITH ''NO EBAY''--THANKS j.d.

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: Online Bidding

Tue Dec 8 04:19:03 2009

HI

Great information and being the experts in this area, this is how ebafia defines a breach of fiduciary responsibility.

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: Online Bidding

Thu Dec 10 02:30:21 2009

Hi

Good, informative post and taking these unilateral actions, eBay believes that Newmark and Buckmaster breached their fiduciary duties in violation of Delaware corporate law.

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: fruity

Thu Dec 17 13:37:49 2009

I love this because the regulators & enforcement agencies will start looking at them. ie SEC and FTC.

SEC with whether the chairman of the board (Pierre) and executives were appropriate in their business practices and FTC as to whether ebays behavior shows a trend in their actions and if that hinders competition. Woohoo!

eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit   eBay's Meg Whitman, Pierre Omidyar to Testify in Craigslist Suit

by: iramency This user has validated their user name.
Web Site

Sun Feb 12 20:07:06 2012

I never knew this. I guess Ebay didn't get squat because Craigslist continues to be a good place to sell things.  



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