TECH
03/18/2010 05:12 am ET | Updated May 25, 2011

eBay, Craigslist Battle For Control In Court

eBay and Craigslist are going head-to-head in court in an effort to settle dueling lawsuits the two companies have filed against one another.

eBay is hoping that the court will find Craigslist guilty of changing its stock structure to dilute eBay's minority stake in the company, which Craigslist counters were part of an effort to shore up Craigslist's "anti-takeover defenses," notes Bloomberg, which has a full report on the lawsuit.

According to the Wall Street Journal, eBay alleges:
Craigslist founder Craig Newmark and Chief Executive Jim Buckmaster diluted eBay's stake in Craigslist through a "self-dealing" and secret scheme to issue more stock. EBay claims the dilution from a 28% stake to a 24% stake caused the company to lose its right to elect a Craigslist board member.

Meanwhile, Craigslist is counter-suing eBay on the grounds that the online auction site exploited its investment in Craigslist in 2004 to steal confidential information from the site, which it later used to create a competing service called "Kijiji" that was first launched overseas, then arrived in the US in 2007.

The Craigslist blog has posted information on the lawsuit, which includes a link to Craigslist's pre-trial brief.

Former eBay CEO Meg Whitman is expected to take the stand, along with eBay founder Pierre Omidyar. Craigslist founder Craig Newmark and CEO Jim Buckmaster are scheduled to testify for Craigslist.

The two companies are to meet in court starting Monday, December 7, 2009. According to Craigslist, its suit against eBay is not likely to come before the court until late 2011.