Electronic Commerce Industry News SampleOct 28, 2005 13:00:13
EBAY INC.: Forges Settlement Re Epinions/Dealtime Merger Suit
SAN FRANCISCO, California (SunStream News) -- Ebay, Inc. reached a tentative agreement with parties in the lawsuit filed against certain of Epinions' former officers and directors and preferred shareholders in the Superior Court of the State of California, San Francisco County, by 51 of Epinions' former shareholders.
The suit is related to the April 2003 merger of Epinions and DealTime, Ltd, and also names as defendant the company that resulted from the merger, Shopping.com Ltd. Shopping.com Ltd. was later acquired by eBay, Inc. on August 30, 2005.
The lawsuit contended that the defendants were responsible for breaches of fiduciary duty and material misstatements and omissions, that defendants undervalued the DealTime stock that Epinions' shareholders received in connection with the merger, and that plaintiffs' common stock of Epinions was wrongfully cancelled without compensation.
Defendants disputed the contentions of the case and denied any allegations of wrongdoing. In September 2005, the parties tentatively reached agreement as to the monetary terms for settlement of the dispute. The settlement remains subject to the final written approval of the parties. The tentative settlement amount has been accounted for as an assumed liability in connection with our acquisition of Shopping.com.ss/car
Source: Class Action Reporter
Publication Date: 2005-10-28
COY: EBAY
IND: ECM
GEO: n-us-ca
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