JOS51700
09-13-2011, 09:43 PM
I don't know if they're guilty or not, but....I know what my opinion is.
Linky-poo (http://online.wsj.com/article/BT-CO-20110913-714455.html)
SAN FRANCISCO (Dow Jones)--U.S. federal investigators are probing whether eBay Inc. (EBAY) employees misappropriated confidential information from online classified service Craigslist, a development that comes amid escalating tension between the embittered partners.
According to a grand jury subpoena issued last week, the U.S. Justice Department is seeking information about incidents in which eBay employees are alleged to have improperly taken proprietary and confidential information from San Francisco's Craigslist to develop a competing service.
Investigators are seeking documents including emails and board meeting notes related to instances in which eBay employees allegedly acquired confidential information "belonging to Craigslist under false pretense and provided it to a third party," according to the subpoena, which was issued in U.S. District Court in San Jose.
Items and data allegedly requested or taken starting in Oct. 2004 include information about the "Craigslist decision-making process for launching in new cities," and confidential operating metrics, according to the subpoena.
"We will cooperate in any inquiry related to the disputes between eBay and Craigslist," an eBay spokesman said in a statement. "EBay believes that Craigslist's allegations against eBay are without merit."
Spokeswomen for Craigslist and the Justice Department declined to comment. A spokesman for Melinda Haag, U.S. Attorney for the Northern District of California, also declined to comment.
News of the probe was previously reported by Reuters.
The investigation comes as the relationship between San Jose-based eBay and Craigslist continues to deteriorate. EBay bought a minority stake in Craigslist in 2004 for $32 million and obtained a seat on the company's board of directors.
Since then however, relations have frayed.
In 2008, eBay filed a lawsuit against Craigslist that argued its ownership stake was wrongly diluted. Craigslist filed a countersuit, alleging that eBay used its ownership stake to pilfer business information and launch a competing classifieds site.
EBay has developed its own classifieds service, called eBay Classifieds in the U.S. and Kijiji in Canada.
According to the subpoena issued last week, investigators are seeking documents related to a series of events, including a 2004 occasion where eBay executive Garrett Price allegedly requested Craigslist's confidential operating metrics, then provided them to "an eBay employee developing eBay's competing classifieds platform."
In addition, the subpoena alleges that eBay employees, including founder and Chairman Pierre Omidyar, while serving on Craigslist's board or taking part in board meetings, "engaged in activities which were in direct breach of their fiduciary duties."
Omidyar also allegedly requested vital Craigslist information in 2005 including "advance notice of plans to launch in new cities," according to the subpoena.
A spokeswoman for Omidyar didn't respond to a request for comment.
While eBay has long been a major stakeholder in closely-held Craigslist, a popular classifieds service started in 1995, Craigslist never appeared to be entirely at ease with its corporate partner.
In a blog posting after eBay filed suit in 2008, Craigslist Chief Executive Jim Buckmaster wrote that, "Every measure we have taken has been for the sake of protecting the long term well-being of the Craigslist community."
Buckmaster added, "Sadly, we have an uncomfortably conflicted shareholder in our midst, one that is obsessed with dominating online classifieds for the purpose of maximizing its own profits."
-By John Letzing, Dow Jones Newswires; 415-765-8230; john.letzing@dowjones.com
--Brent Kendall contributed to this report
Linky-poo (http://online.wsj.com/article/BT-CO-20110913-714455.html)
SAN FRANCISCO (Dow Jones)--U.S. federal investigators are probing whether eBay Inc. (EBAY) employees misappropriated confidential information from online classified service Craigslist, a development that comes amid escalating tension between the embittered partners.
According to a grand jury subpoena issued last week, the U.S. Justice Department is seeking information about incidents in which eBay employees are alleged to have improperly taken proprietary and confidential information from San Francisco's Craigslist to develop a competing service.
Investigators are seeking documents including emails and board meeting notes related to instances in which eBay employees allegedly acquired confidential information "belonging to Craigslist under false pretense and provided it to a third party," according to the subpoena, which was issued in U.S. District Court in San Jose.
Items and data allegedly requested or taken starting in Oct. 2004 include information about the "Craigslist decision-making process for launching in new cities," and confidential operating metrics, according to the subpoena.
"We will cooperate in any inquiry related to the disputes between eBay and Craigslist," an eBay spokesman said in a statement. "EBay believes that Craigslist's allegations against eBay are without merit."
Spokeswomen for Craigslist and the Justice Department declined to comment. A spokesman for Melinda Haag, U.S. Attorney for the Northern District of California, also declined to comment.
News of the probe was previously reported by Reuters.
The investigation comes as the relationship between San Jose-based eBay and Craigslist continues to deteriorate. EBay bought a minority stake in Craigslist in 2004 for $32 million and obtained a seat on the company's board of directors.
Since then however, relations have frayed.
In 2008, eBay filed a lawsuit against Craigslist that argued its ownership stake was wrongly diluted. Craigslist filed a countersuit, alleging that eBay used its ownership stake to pilfer business information and launch a competing classifieds site.
EBay has developed its own classifieds service, called eBay Classifieds in the U.S. and Kijiji in Canada.
According to the subpoena issued last week, investigators are seeking documents related to a series of events, including a 2004 occasion where eBay executive Garrett Price allegedly requested Craigslist's confidential operating metrics, then provided them to "an eBay employee developing eBay's competing classifieds platform."
In addition, the subpoena alleges that eBay employees, including founder and Chairman Pierre Omidyar, while serving on Craigslist's board or taking part in board meetings, "engaged in activities which were in direct breach of their fiduciary duties."
Omidyar also allegedly requested vital Craigslist information in 2005 including "advance notice of plans to launch in new cities," according to the subpoena.
A spokeswoman for Omidyar didn't respond to a request for comment.
While eBay has long been a major stakeholder in closely-held Craigslist, a popular classifieds service started in 1995, Craigslist never appeared to be entirely at ease with its corporate partner.
In a blog posting after eBay filed suit in 2008, Craigslist Chief Executive Jim Buckmaster wrote that, "Every measure we have taken has been for the sake of protecting the long term well-being of the Craigslist community."
Buckmaster added, "Sadly, we have an uncomfortably conflicted shareholder in our midst, one that is obsessed with dominating online classifieds for the purpose of maximizing its own profits."
-By John Letzing, Dow Jones Newswires; 415-765-8230; john.letzing@dowjones.com
--Brent Kendall contributed to this report