eBay v. Craigslist

Trial 12/07/09 – 12/17/09

Case Number: 3705-CC
Status: Concluded - Verdict
Industry: Technology
Practice Area: Securities, Mergers and Acquisitions, Business Organizations
Judge: William Chandler
Court: Court of Chancery Courthouse
Jurisdiction: Delaware Court Of Chancery

Description

eBay alleged that Craiglist's directors unfairly diluted eBay's 28.4 percent minority shareholder stake in Craigslist and eliminated eBay's right to appoint a director.

See CVN's Blog for all the details, and see CVN's Daily Video Clips Special Offer.

Craigslist impaired eBay's stake and implemented a poison pill after eBay launched in the US a competing online classified website, kijiji.com. In a separate lawsuit filed in San Francisco, Craigslist accused eBay of using its shareholder position, which allowed eBay to appoint a director, to obtain confidential competitive information to gain an unfair commercial advantage in developing eBay's own competing online classified ad business.

Craig Newmark, founder of Craigslist, and Jim Buckmaster, Craigslist's President and CEO, were the only two members of Craigslist's board of directors, and the only shareholders (other than eBay).

On August 9, 2004, eBay became a shareholder and obtained first refusal rights and the right to appoint a director. eBay's rights were contingent upon its refraining from engaging in competitive activity. On June 29, 2007, eBay launched in the United States its own online classified advertising website, kijiji.com, and Craigslist sent a notice of Competitive Activity. eBay refused Craigslist's subseqent request to divest its shares.

Craigslist then diluted eBay's shares, which eliminated eBay's right to appoint a director, and implemented a poison pill that would prevent eBay from selling its shares to anyone other than to Craigslist. eBay commenced this lawsuit hoping to restore its position and to void the poison pill.

The eBay-Craigslist trial has testimony from Meg Whitman (eBay CEO), Pierre Omidyar (eBay Founder), Josh Silverman (Skype CEO), Craig Newmark (Craigslist Founder), Jim Buckmaster (Craigslist CEO), Garrett Price (eBay Business Development Lead), Brian Levey (eBay Counsel), and Ed Wes (Craigslist Counsel). For more information, visit the CVN Blog.

View a free video clip from the case:
Former eBay CEO, Meg Whitman, is cross-examined by attorney Catherine Dearlove -- Clip 1

Sessions
Recording Disclaimer: This proceeding was recorded in full.

December 17 - AM Session

Defense Witness(es)

		Description	Witness	Presence
00:00:00	00:00:00	Witness Cross Examination	Wes, Ed	In Person
00:23:00	00:23:00	Witness Re-Direct Examination	Wes, Ed	In Person
00:54:50	00:54:50	Witness Re-Cross Examination	Wes, Ed	In Person
00:56:00	00:56:00	Witness Direct Examination	Martin, Ananda	In Person
01:35:00	01:35:00	Break
01:54:20	01:54:20	Witness Direct Examination	Martin, Ananda	In Person
02:06:30	02:06:30	Witness Cross Examination	Martin, Ananda	In Person
03:04:00	03:04:00	Witness Re-Direct Examination	Martin, Ananda	In Person

December 17 - PM Session

Not in Session

December 16 - AM Session

Defense Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Direct Examination	Pittenger, Michael	Wes, Ed	In Person

December 16 - PM Session

Defense Witness(es)

		Description	Witness	Presence
00:00:00	00:00:00	Witness Cross Examination	Wes, Ed	In Person
01:42:04	01:42:04	Break
01:58:04	01:58:04	Witness Cross Examination	Wes, Ed	In Person

December 16 - AM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Direct Examination	Pittenger, Michael	Wes, Ed	In Person
01:31:01	01:31:01	Break
01:46:47	01:46:47	Witness Direct Examination	Pittenger, Michael	Wes, Ed	In Person

December 15 - AM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Direct Examination	Clyde, Michael	Buckmaster, Jim	In Person
01:20:30	01:20:30	Break
01:34:28	01:34:28	Witness Direct Examination	Clyde, Michael	Buckmaster, Jim	In Person

December 15 - PM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Direct Examination	Clyde, Michael	Buckmaster, Jim	In Person
01:51:40	01:51:40	Break
02:09:04	02:09:04	Witness Cross Examination	Rhodes, Michael	Buckmaster, Jim	In Person
03:12:34	03:12:34	Witness Re-Direct Examination	Clyde, Michael	Buckmaster, Jim	In Person
03:23:04	03:23:04	Witness Direct Examination	Pittenger, Michael	Wes, Ed	In Person

December 14 - AM Session

Plaintiff Witness(es)

		Description	Witness	Presence
00:00:00	00:00:00	Witness Direct Examination	Buckmaster, Jim	In Person
01:41:00	01:41:00	Break
01:55:00	01:55:00	Witness Direct Examination	Buckmaster, Jim	In Person

December 14 - PM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Direct Examination		Buckmaster, Jim	In Person

December 11 - AM Session

Defense Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Cross Examination	Rhodes, Michael	Newmark, Craig	In Person
01:34:43	01:34:43	Break
01:49:13	01:49:13	Witness Cross Examination	Rhodes, Michael	Newmark, Craig	In Person
02:41:30	02:41:30	Break
02:49:30	02:49:30	Witness Cross Examination	Rhodes, Michael	Newmark, Craig	In Person

December 11 - PM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Cross Examination	Rhodes, Michael	Newmark, Craig	In Person
00:18:38	00:18:38	Witness Re-Direct Examination	Foster, Anne	Newmark, Craig	In Person
00:24:08	00:24:08	Witness Direct Examination	Clyde, Michael	Buckmaster, Jim	In Person

December 10 - PM Session

Defense Witness(es)

		Description	Attorney	Witness	Presence
00:00:35	00:00:35	Witness Cross Examination	Clyde, Michael	Price, Garret	In Person
01:02:35	01:02:35	Witness Re-Direct Examination		Price, Garret	In Person
01:25:34	01:25:34	Witness Re-Cross Examination	Clyde, Michael	Price, Garret	In Person
01:30:30	01:30:30	Witness Direct Examination	Foster, Anne	Newmark, Craig	In Person
01:58:30	01:58:30	Break
02:15:33	02:15:33	Witness Direct Examination	Foster, Anne	Newmark, Craig	In Person
03:36:00	03:36:00	Witness Cross Examination	Rhodes, Michael	Newmark, Craig	In Person

December 10 - AM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Cross Examination	Clyde, Michael	Price, Garret	In Person
01:28:25	01:28:25	Break
01:43:00	01:43:00	Witness Cross Examination	Clyde, Michael	Price, Garret	In Person

December 9 - AM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Cross Examination	Clyde, Michael	Levey, Brian	In Person
01:38:57	01:38:57	Break
01:55:31	01:55:31	Witness Cross Examination	Clyde, Michael	Levey, Brian	In Person
03:41:32	03:41:32	Witness Re-Direct Examination	Rhodes, Michael	Levey, Brian	In Person

December 9 - PM Session

Plaintiff Witness(es)

		Description	Witness	Presence
00:00:00	00:00:00	Witness Direct Examination	Price, Garret	In Person
01:25:30	01:25:30	Break
01:37:30	01:37:30	Witness Direct Examination	Price, Garret	In Person

December 8 - AM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Direct Examination		Silverman, Joshua	In Person
01:21:42	01:21:42	Break
01:38:30	01:38:30	Witness Cross Examination	Yurasek, Jason	Silverman, Joshua	In Person

December 8 - PM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Cross Examination	Yurasek, Jason	Silverman, Joshua	In Person
01:25:01	01:25:01	Witness Re-Direct Examination		Silverman, Joshua	In Person
01:29:12	01:29:12	Witness Re-Cross Examination	Yurasek, Jason	Silverman, Joshua	In Person
01:31:16	01:31:16	Break
01:46:01	01:46:01	Witness Direct Examination	Rhodes, Michael	Levey, Brian	In Person
03:26:54	03:26:54	Break
03:47:02	03:47:02	Witness Cross Examination	Clyde, Michael	Levey, Brian	In Person

December 7 - AM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Direct Examination	Rhodes, Michael	Witman, Margret	In Person
01:18:40	01:18:40	Break
01:33:55	01:33:55	Witness Cross Examination	Dearlove, Catherine	Witman, Margret	In Person

December 7 - PM Session

Plaintiff Witness(es)

		Description	Attorney	Witness	Presence
00:00:00	00:00:00	Witness Direct Examination	Rhodes, Michael	Omidyar, Pierre	In Person
01:09:24	01:09:24	Witness Cross Examination		Omidyar, Pierre	In Person
01:39:37	01:39:37	Break
01:52:44	01:52:44	Witness Cross Examination		Omidyar, Pierre	In Person
02:06:49	02:06:49	Witness Re-Direct Examination	Rhodes, Michael	Omidyar, Pierre	In Person
02:14:56	02:14:56	Witness Direct Examination		Silverman, Joshua	In Person