eBay Domestic Holdings, Inc. v. Newmark
Delaware Court of Chancery
16 A.3d 1 (2010)
Relevant factsFree
Craig Newmark and Jim Buckmaster (defendants) held about 71.6 percent of craigslist's shares and wanted to preserve its community-service culture rather than maximize profit, while minority shareholder eBay (plaintiff), holding the remaining 28.4 percent, wanted craigslist to pursue profitability. Concerned their heirs might later sell inherited shares to eBay and dilute that culture, Craig and Jim adopted a stockholder rights plan, and eBay sued claiming this breached their fiduciary duties.
IssueFree
Whether, under the Unocal test, directors must identify proper corporate objectives served by their actions and justify those actions as reasonable in relation to those objectives.
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