EcommerceBytes-NewsFlash, Number 2472 - February 04, 2011     1 of 5

Judge Denies eBay's Motion to Dismiss Craigslist Lawsuit

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Craigslist sued eBay in 2008, and the case is now one step closer to being heard after a ruling this week. San Francisco Superior Court Judge Richard Kramer denied eBay's motion to dismiss a lawsuit filed by Craigslist and rejected eBay's contention that the lawsuit was precluded by the findings of a Delaware court, according to Bloomberg.

The Delaware ruling, described in this AuctionBytes post, was handed down by Judge Chandler in eBay's corporate governance lawsuit against Craigslist.

The history of the relationship between the two companies is complex - it began when a Craigslist shareholder insisted on selling his shares in 2004 against the wishes of the other two shareholders, founder Craig Newmark and Jim Buckmaster. eBay appeared to be a palatable option, but the relationship quickly soured.

When eBay launched a competing classified service in the U.S., Craigslist tried to lock eBay out of its Board, resulting in the Delaware lawsuit filed by eBay. The judge ruled in September 2010: eBay won in part and lost in part.

Craigslist sued eBay in 2008 after eBay filed its lawsuit, and it remained on hold until the corporate governance lawsuit was wrapped up. Now, the two parties may meet again in court, this time in California. And it may be uglier - Craigslist filed an amended complaint in October, adding eBay founder and Chairman of the Board Pierre Omidyar as a defendant after hearing his testimony in the Delaware courtroom.


About the author:

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.


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