eBay, former executives to pay $56 million in harassment settlement

• eBay will pay the couple $46.15 million and fund $6 million in charitable contributions; the company previously paid a $3 million criminal fine
• Former CEO Devin Wenig will pay $2 million to the Steiners and donate $1 million to a First Amendment charity, though he was never criminally charged
• The harassment campaign began after Wenig texted 'time to take her down' about Ina Steiner in August 2019, with employees traveling from California to Massachusetts to surveil the couple

eBay and Former Executives Settle Harassment Case for $55.7 Million

eBay and three former executives have agreed to pay $55.7 million to settle a lawsuit filed by Massachusetts couple David and Ina Steiner, who were victims of a corporate harassment and cyberstalking campaign in 2019.

Settlement Breakdown:

• eBay will pay $46.15 million directly to the couple
• $6 million allocated for charitable contributions to nonprofit organizations
• Former CEO Devin Wenig will pay $2 million to the Steiners and donate $1 million to a First Amendment rights charity
• Former executive Wendy Jones will pay $500,000
• Former communications officer Steve Wymer will pay $50,000

Background:

The harassment campaign targeted the Steiners in retaliation for their coverage of eBay in their newsletter, EcommerceBytes. Senior executives deemed the publication too critical of the company. The scheme involved sending cockroaches, fly larvae, and a bloody pig mask to the couple, as well as physical surveillance at their Natick, Massachusetts home and attempted GPS tracking device installation on their vehicle.

The campaign began in August 2019 after then-CEO Wenig texted it was time to "take her down," referring to Ina Steiner. Seven former eBay employees pleaded guilty and received prison sentences up to 57 months.

Corporate Consequences:

eBay was criminally charged and paid a $3 million fine in 2022. The company issued a statement calling the conduct "wrong, reprehensible and should never have happened" and extended apologies to the victims.

Market Implications:

This settlement underscores significant legal and financial risks corporations face for executive misconduct and retaliation against critics, potentially influencing corporate governance standards and whistleblower protection policies across e-commerce and broader business sectors.