Craigslist has accused eBay of unfair competition, false advertising, phishing attacks and trademark infringement.
EBay filed a lawsuit against Craigslist in April, claiming that two of its directors were trying to reduce eBay's shareholding in the company.
The bitter dispute has arisen after eBay launched a free-classified service last year to rival Craigslist, under the name Kijiji.
Craigslist's lawsuit, filed in California on Tuesday, asks for eBay to be made to relinquish its shares in Craigslist as well as make "full restitution" to the company, although it does not specify how much this would be.
EBay has denied the charges. Spokeswoman Kim Rubey said: "We regret that Craigslist felt compelled to resort to unfounded and unsubstantiated claims in order to divert attention from actions by Craigslist's board that unfairly diluted our minority interest."
EBay first began to take an interest in Craigslist in 2004, by trying to buy a minority stake in the company. However, Craigslist founder Craig Newmark and chief executive Jim Buckmaster, resisted selling.
EBay eventually succeeded in buying a stake in the company via a former employee. However, Craigslist's lawsuit says that eBay tried to gain a greater interest in the company, and glean information that would help it start a rival service.
According to the Craigslist suit, it had an agreement with eBay that it would relinquish shares in the company if it ever did start a rival.
Read Gordon's Republic blog post: Craigslist battles for independence
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