Auctionbytes-NewsFlash, Number 357 - July 12, 2002 - ISSN 1539-5065
PayPal Shareholders File Class Action Lawsuit Against PayPal & eBay
By Ina Steiner
AuctionBytes.com
Reading AuctionBytes: PayPal Shareholders File Class Action Lawsuit Against PayPal & eBay
Two PayPal shareholders have filed class action lawsuits against PayPal and eBay this week, according to SEC filings by the two companies. The suits allege that the defendants have breached fiduciary duties they allegedly owe to PayPal stockholders by entering into a planned merger, and that the merger consideration is unfair and inadequate. eBay announced Monday that it had agreed to acquire PayPal in a stock deal. Shareholders would receive .39 shares of eBay stock for each PayPal stock they owned, estimated at $1.5 billion on Monday.
The complaints seek an injunction prohibiting the Merger, unspecified monetary damages, and costs and attorneys’ fees. PayPal and eBay believe that these suits are without merit and intend to defend against them vigorously, according to the documents filed with the SEC.
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