EBay Settles Lawsuit

EBay Inc., the largest Internet auction company, agreed to settle its lawsuit against ReverseAuction.com Inc. over customer privacy issues. EBay agreed to settle for $1.2 million. EBay filed the suit against Washington-based ReverseAuction in January, claiming its rival violated the privacy of EBay customers by compiling e-mail addresses and sending deceptive e-mails urging a switch to ReverseAuction. The suit was filed in a U.S. District Court in San Jose, where EBay is based. Closely held ReverseAuction in January settled similar allegations from the Federal Trade Commission. EBay shares fell $3 to close at $49.69 on Nasdaq.