eBay Settles for $50 Million in Harassment Case

On Tuesday, eBay Inc. reached a settlement of around $50 million with a couple from Massachusetts after a former employee allegedly harassed them. This unusual intimidation involved sending strange packages that contained live cockroaches, spiders, a preserved pig fetus, a funeral wreath, a bloody pig mask for Halloween, and a book about dealing with loss.

This legal battle, initiated in 2021, drew attention to a 2019 campaign of harassment aimed at David and Ina Steiner, who report on the e-commerce sector through their newsletter.

The lawsuit claims that the Steiners’ critical reporting angered employees at eBay, leading them to conspire to “intimidate, threaten death, torture, terrorize, stalk and silence” the couple. The Steiners reported experiencing cyberstalking, direct death threats, and even being followed in person.

“We hope the magnitude of this settlement will deter companies from using their power to intimidate journalists simply because they disagree with their reporting,” the couple shared in a statement.

Despite eBay’s previous apologies, the Steiners are pushing for accountability, particularly from three executives named in the lawsuit. These include former CEO Devin Wenig. Interestingly, while criminal charges have been brought against other former employees involved in the harassment, none have been filed against these executives.

According to the Steiners, the harassment campaign started with threatening messages on social media and escalated to anonymous deliveries to their home. They alleged that employees even attempted to discredit them by sending inappropriate materials to their neighbors.

In a twist, Ina Steiner expressed her disbelief, saying she initially couldn’t fathom why they’d be targeted or who was behind it.

Under the terms of the settlement, the Steiners will receive $48.7 million, which breaks down to approximately $46.15 million from eBay, $2 million from Wenig, $500,000 from a former executive, and $50,000 from another former executive. eBay also committed to $6 million in charitable contributions, with Wenig donating an extra $1 million to a charity that supports First Amendment rights.

Ina Steiner mentioned that they wanted to ensure transparency in the process, opting for a settlement without a confidentiality clause so they could speak openly about their experiences. “We both agreed that, as victims and reporters, this settlement should be public,” she noted.

As an added dimension, eBay, which expressed regret over the events, stated that such behavior does not reflect the current culture of the company. They’ve made changes in leadership and strengthened policies to ensure such incidents are not repeated.

Wenig, who still denies knowledge of the harassment, expressed sadness over the ordeal the Steiners faced during his tenure. “No one should endure what they went through, and I’m truly sorry for it,” he remarked, emphasizing that the harassment was conducted in secrecy without his knowledge.

In 2024, eBay agreed to pay a $3 million criminal fine linked to the overall harassment scheme.