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Classified-advertising site Craigslist is countersuing eBay, accusing the online auction company of using its stake in Craigslist to misappropriate proprietary information and engage in false advertising, trademark infringement and a host of other wrongdoings. The suit, filed in a San Francisco court, is a response to eBay's suit filed April 22 against Craigslist, which charged that Craigslist's board of directors secretly plotted to dilute eBay's 28.4 percent investment in the site after eBay launched a competing online classified-advertising service called Kijiji. EBay launched Kijiji overseas in 2005 and in the U.S. last year.

Craigslist's countersuit, filed Tuesday with the Superior Court of the State of California, reveals a sea of bad blood between the companies and escalates the legal battle between them. It also sheds light on tensions between the two that began even before eBay purchased its stake in Craigslist in August 2004.

View: The full story @ PCWorld