eBay cyberstalking settlement reaches $56 million with newsletter writers
eBay and former executives agreed to pay Ina and David Steiner nearly $56 million, resolving their civil case over a 2019 harassment campaign.
By Theo Nakamura · Staff Writer
· 3 min read
eBay’s cyberstalking settlement with Ina and David Steiner has reached nearly $56 million, closing a civil case tied to a 2019 harassment campaign by former company employees. For retail investors, the payout is a reminder that corporate culture failures can become real legal and reputational costs years after the underlying conduct.
The Steiners, a married couple who publish the e-commerce newsletter EcommerceBytes, sued eBay in 2021 after they were targeted following critical coverage of the company. According to the Steiners’ law firm, the settlement includes $46.15 million from eBay, $2 million from former eBay CEO Devin Wenig, $500,000 from former eBay executive Wendy Jones and $50,000 from former eBay executive Steve Wymer. The firm said additional money will go to nonprofit organizations.
A civil settlement is an agreement that resolves a lawsuit without continuing to trial. It does not by itself create new criminal charges, but it can put a financial endpoint on claims brought by private plaintiffs.
What was the eBay cyberstalking case?
The case centered on a campaign aimed at pressuring the Steiners over their newsletter coverage of eBay. According to court documents previously released by the U.S. Department of Justice, former eBay employees used fake social media accounts, sent threatening messages and mailed disturbing items to the couple.
Items sent to the Steiners included live spiders and cockroaches, pornographic magazines, a bloody pig mask, a funeral wreath and a book about coping with the death of a spouse, according to those DOJ materials. The documents also described a plan to place a GPS tracker on the couple’s car that was attempted but not successfully completed. Another idea discussed internally involved sending a “Samoan gang” to the Steiners’ home, according to the same materials.
The criminal side of the matter had already moved through court. In 2022, seven former eBay employees were criminally charged and pleaded guilty in connection with the plot, according to the Justice Department. James Baugh, eBay’s former security chief, was sentenced to nearly five years in prison. The DOJ also named David Harville, Brian Gilbert, Stephanie Popp, Stephanie Stockwell, Philip Cooke and former eBay contractor Veronica Zea among those charged.
How much is eBay paying?
- eBay will pay $46.15 million to Ina and David Steiner, according to the couple’s law firm.
- Former eBay CEO Devin Wenig will pay $2 million, according to the same firm.
- Former eBay executive Wendy Jones will pay $500,000.
- Former eBay executive Steve Wymer will pay $50,000.
- Additional settlement funds will be directed to nonprofits, according to the Steiners’ representatives.
In a statement released Tuesday, eBay said the conduct was “wrong, reprehensible and should never have happened.” The company said the former employees’ actions were “not representative of eBay’s culture” and said it condemned the employees who pleaded guilty to criminal charges.
“We continue to extend our deepest apologies to the Steiners,” eBay said. “This agreement is consistent with our commitment to fairly compensate the Steiners and fulfills our efforts to make things right.”
Christopher Murphy, one of the Steiners’ attorneys, said the case was about more than money. He said the couple wanted to expose what happened, protect journalists and publishers, hold people accountable, deter future corporate misconduct and help prevent others from experiencing similar treatment.
This story draws on original reporting from TechCrunch.
