eBay and PayPal defend lawsuits

eBay and PayPal defend lawsuits

Online auction house eBay has been hit by two lawsuits calling for an injunction to halt the company's planned takeover of person-to-person payment operator PayPal.

The lawsuits have been filed by individuals claiming to be PayPal stockholders.

Both complaints allege that eBay controls PayPal and that both companies breached fiduciary duties to stockholders when they agreed the $1.5 billion all-stock transaction.

The plaintiffs in each lawsuit seek, among other things, an injunction against the consummation of the merger and an award of unspecified compensatory damages.

eBay says it believes that the lawsuits are without merit and intends to defend itself vigorously.

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