eBay and former executives agree to $55.7 million settlement in harassment lawsuit
eBay will pay $46.15 million and former executives will contribute additional funds to resolve a federal lawsuit alleging a cyber-stalking campaign against a Massachusetts couple who reported on the company.
eBay and three former senior executives have reached a settlement totaling $55.7 million to end a lawsuit filed by Massachusetts residents David and Ina Steiner. The couple alleged that several eBay employees conducted a harassment campaign in 2019 after the Steiners’ newsletter, EcommerceBytes, criticized the company. The settlement provides $46.15 million directly to the Steiners, $6 million for charitable contributions, and requires eBay to issue a statement condemning the conduct of the former executives.
"We believe this resolution sends a clear message that corporations and their executives cannot engage in this type of misconduct without facing significant consequences," said Christopher Murphy, the Steiners’ attorney.
"We continue to extend our deepest apologies to the Steiners," eBay said in a statement, adding that the agreement aligns with its commitment to compensate the couple.
Seven former eBay employees pleaded guilty and received prison sentences of up to 57 months for actions that included sending insects, a Halloween mask, and attempting to install a GPS tracker on the Steiners’ vehicle. Prosecutors said the effort was intended to silence the couple after senior leaders deemed their reporting unfavorable.
Former CEO Devin Wenig, who was not charged, will pay $2 million to the Steiners and donate $1 million to a First Amendment-focused charity. Former senior vice president Wendy Jones and former chief communications officer Steve Wymer will each pay $500,000 and $50,000, respectively. Additional settlements were reportedly reached with other former employees named in the lawsuit.