GSI Commerce : Case reveals secret dealings in eBay acquisition

Represented the Erie County Employees’ Retirement System, shareholders of GSI Commerce (GSI), in a class action challenging the company’s acquisition by eBay.

We alleged that GSI’s founder breached his fiduciary duties by negotiating a secret deal with eBay to buy several GSI subsidiaries at below market prices before the eBay acquisition—significantly reducing the acquisition price paid to GSI stockholders. In addition,  we alleged that GSI’s board breached its fiduciary duties to stockholders by allowing the founder’s acquisition and failing to disclose it to stockholders. Plaintiffs achieved a $24 million settlement to address the claims of unfair dealing.

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