Ebay has won a lawsuit against online classified ad site Craigslist, restoring the auction group's near 25% stake...
in the company.
The Delaware Court of Chancery gave back to Ebay the 3.55% lost when Craigslist diluted its stake to 24.85%, according to the Financial Times.
Ebay acquired a 28.4% stake in Craigslist for $32m in 2004, but upset Craigslist when it launched its own classified ad site, Kijiji.
Craigslist diluted Ebay's stake and stripped it of its board seat, which Craigslist accused Ebay of abusing by obtaining proprietary information to set up Kijiji.
The judge in the ensuing lawsuit ruled that the transactions undertaken by Craigslist to dilute Ebay's stake were unlawful.
The judge restored Ebay's original stake and rescinded clauses designed by Craigslist to prevent Ebay from selling its share on the open market.
But the judge did not reinstate Ebay's seat on the board and said Craigslist retained the right to elect its own board members.