In re eBay, Inc. Shareholders Litigation
Delaware Court of Chancery
2004 WL 253521 (Del. Ch.)
Goldman Sachs was hired to underwrite the initial public offering of eBay stock. In doing so, Goldman Sachs allocated shares of the initial eBay stock to eBay “insiders,” including members of eBay’s board of directors. Shareholders of eBay (plaintiffs) brought suit against the directors (defendants), alleging that the directors’ acceptance of the private allocations violated their fiduciary duty to eBay by usurping eBay’s corporate opportunity in that eBay could and would have purchased the stock that was allocated. It is undisputed that eBay could afford the stock financially, that it was in the business of investing in securities, and that eBay was never given an opportunity to turn down the allocations. The directors filed a motion to dismiss the claim.
Rule of Law
Holding and Reasoning (Memorandum)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 174,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,000 briefs, keyed to 188 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.