eBay agrees $55.7m settlement over 2019 cyberstalking campaign against Steiners

eBay and several former executives have agreed to pay $55.7 million to settle a civil lawsuit brought by Ina and David Steiner over a 2019 harassment campaign.

The Steiners, operators of the EcommerceBytes news site, were targeted by former eBay employees in what their lawyers at Scalli Murphy Law described as a "terror campaign" intended to stop their reporting. The agreement concludes more than six years of criminal and civil proceedings.

Background

The Steiners filed their case in Boston federal court in 2021, following criminal prosecutions involving several former eBay employees over a scheme that included sending the couple cockroaches, fly larvae, and a bloody Halloween pig mask.

Settlement Details

• Total compensation to the Steiners: $48.7 million
• eBay will pay $46.15 million
• Former CEO Devin Wenig will pay $2 million
• Former executive Wendy Jones will pay $500,000
• Former executive Steve Wymer will pay $50,000
• Charitable donations: $6 million to non-profit groups, paid by eBay
• Additional donation: Wenig will make a separate $1 million donation to an organization supporting First Amendment rights, made in Ina Steiner's name

Public Statement Requirements

The agreement requires eBay to issue a public statement covering the conduct of Wenig, Wymer, and Jones in connection with events in Natick, Massachusetts, and the wider company culture in 2019.

Statements

Christopher Murphy, the Steiners' attorney, said: "We believe this resolution sends a clear message that corporations and their executives cannot engage in this type of misconduct without facing significant consequences."

eBay stated: "As we have long stated, what the Steiners were subjected to by former eBay employees in 2019 was wrong, reprehensible and should never have happened. We condemn, in the strongest terms possible, the employees who perpetrated and pled guilty to criminal charges for the misconduct against Ina and David Steiner. We also acknowledge the unprofessional tone in internal communications demonstrated, to different degrees and number, by Mr Wenig, Mr Wymer, and Ms Jones."

Additional Notes

• The settlement does not include a confidentiality clause, allowing the Steiners to speak publicly about the case and outcome.
• Separate settlements were reached with other eBay employees named as defendants in the civil case.
• All pleaded guilty to charges linked to the harassment campaign.

Broader Corporate Context

The agreement comes amid wider corporate developments at eBay. In May, GameStop proposed an unsolicited and non-binding offer to acquire eBay in a cash-and-stock deal valued at approximately $55.5 billion, pitched at $125 per share. eBay's board turned down the proposal that same month, calling it "neither credible nor attractive."

This article was originally created and published by Retail Insight Network, a GlobalData owned brand.