eBay v. craigslist

In this nationally publicized case, eBay filed suit in Delaware Chancery Court against craigslist and craigslist’s directors. eBay sought to require craigslist to rescind its poison pill and a share issuance to craigslist’s directors that diluted eBay’s ownership interest in the company. Compass Lexecon expert Daniel R. Fischel testified at deposition and filed an expert report that was admitted at trial demonstrating that the poison pill and share issuance caused disproportionate harm to eBay and disproportionate benefits to the craigslist directors. Chancellor William Chandler ordered craigslist to rescind the poison pill and share issuance, finding craigslist’s directors violated their fiduciary duties to eBay. Jerry Lumer, Rajiv Gokhale and Laurel Van Allen of Compass Lexecon’s Chicago office assisted in the analysis. We worked with William Lafferty of Morris, Nichols, Arsht & Tunnell LLP.