Former eBay executives settle harassment lawsuit for $56 million

By: Mike Crisolago Reading time: 6 minutes

It sounds like the eBay delivery from hell: live cockroaches and spiders, a bloody pig mask, a funeral wreath, and a book about grieving a spouse's death.

Yet that is what a civil lawsuit alleges former eBay executives sent to the home of David and Ina Steiner, a Massachusetts couple who publishes the e-commerce trade publication EcommerceBytes, after their reporting drew criticism from the company.

The 2021 civil lawsuit against the former eBay executives — which alleged "a coordinated effort to intimidate, threaten to kill, torture, terrorize, stalk and silence the Steiners, in order to stifle their reporting on eBay" — was finally settled on July 27, resulting in a total payout of nearly $56 million.

"There's no doubt that there is a sense of relief because of the protracted nature of the litigation," David Steiner told Moneywise. "It took a physical, mental, emotional and financial toll on Ina and myself. We hope that the size of the settlement amount will act as a deterrent to corporations in the future."

Settlement Breakdown

Under the settlement, the Steiners will receive:

• $46.15 million from eBay
• $2 million from former CEO Devin Wenig
• $550,000 from two other former executives

The agreement also includes $7 million in charitable donations, including $1 million honoring Ina Steiner's support of First Amendment rights.

How the Alleged Intimidation Campaign Unfolded

The couple alleged in their lawsuit that "eBay, through its Chief Executive leadership, sent a directive and enlisted at least seven members of the eBay security staff … to deal with the Steiners" and "terminate" their reporting.

According to the lawsuit, the campaign escalated from online taunts and pornography sent to neighbors in David's name to threatening deliveries that included:

• Live spiders and cockroaches
• A bloody pig mask
• A funeral wreath
• A book entitled Grief Diaries: Surviving Loss of a Spouse

The lawsuit also alleges that some defendants:

• Traveled to Massachusetts to stalk the couple
• Attempted to place a tracking device on their vehicle
• Posted their address online
• Created fake invitations to sex parties and yard sales at their home

"The Steiners were paralyzed with fear," the lawsuit contends. The couple repeatedly contacted police and installed security cameras at their home, while the defendants allegedly celebrated the campaign and later plotted to destroy evidence when police began investigating.

Why the Steiners Took Legal Action

David Steiner told Moneywise that he and his wife decided to fight back in court when "it became obvious to us that the (U.S. Attorney's Office) in Boston was not going to indict any member of the executive team at eBay." He added that "it was up to us" to hold them accountable.

The U.S. Department of Justice, via the U.S. Attorney's Office for the District of Massachusetts, indicted six former eBay employees and a contractor. eBay also paid a $3 million criminal fine.

This is a definitive conclusion to a harassment campaign that allegedly began in 2019, details of which the lawsuit says "shock the conscience and demonstrate the utter depths eBay would stoop to in order to take the Steiners down and end their reporting."