Trial set in eBay-Craigslist dispute

AP News
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Posted: Dec 07, 2009 3:05 AM

Internet heavyweights eBay and Craigslist are set to square off in a Delaware courtroom over a business deal gone bad.

A trial was scheduled to begin Monday in a lawsuit filed by Internet auctioneer eBay against Craigslist founder Craig Newmark and CEO Jim Buckmaster. eBay claims the two men, who were the only directors of online classified ads company Craigslist, improperly acted to dilute the minority interest of eBay.

San Francisco-based Craigslist claims in a countersuit that San Jose, Calif.-based eBay used its investment in Craiglist to gain information it later used to form a competing classified service.

Former eBay CEO Meg Whitman, who is seeking the Republican gubernatorial nomination in California, is expected to testify Monday.