eBay Inc. has agreed to pay nearly $50 million to a Massachusetts couple who alleged that former employees of the company orchestrated a cyberstalking and harassment campaign against them. The settlement resolves a lawsuit filed in 2021 by David and Ina Steiner, founders of EcommerceBytes, a newsletter that reports on the e-commerce industry.
The settlement, announced Tuesday, includes $48.7 million in compensation to the Steiners and $7 million in charitable donations. The compensation includes payments from eBay, former CEO Devin Wenig, former Chief Communications Officer Steve Wymer, and former Senior Vice President Wendy Jones. The charitable contributions will go to various nonprofit organizations, including those supporting First Amendment rights.
According to the lawsuit, the Steiners claimed that the conspiracy by former eBay workers aimed to "intimidate, threaten to kill, torture, terrorize, stalk and silence them" to stifle their reporting on the company. The harassment allegedly included cyberstalking, death threats, and in-person surveillance. The deliveries to their home reportedly included live cockroaches, spiders, a funeral wreath, and a bloody pig Halloween mask.
eBay acknowledged in a statement that the conduct of former employees in 2019 was "wrong, reprehensible and should never have happened." The company also acknowledged "unprofessional tone in internal communications" by former executives Wenig, Wymer, and Jones. eBay stated that the conduct does not represent the company's culture and that it has since changed leadership and strengthened policies and ethics training.
In 2020, federal prosecutors charged seven former eBay employees in connection with the harassment campaign. Most of the defendants pleaded guilty to charges including conspiracy and cyberstalking, and several were sentenced to prison or home confinement. In 2024, eBay agreed to pay a $3 million criminal penalty as part of a deferred prosecution agreement with federal authorities.
The settlement does not include a confidentiality provision, allowing the Steiners to speak publicly about the case. Their attorney, Christopher Murphy, stated that the resolution sends a warning that attempts by large businesses to suppress speech and the press will not be tolerated. He emphasized that the case was an attack on the couple and on free speech and freedom of the press.
The settlement also requires eBay to issue a public statement addressing the conduct of the former executives involved.