eBay cyberstalking settlement totals $55.7 million for journalists

The eBay cyberstalking settlement with EcommerceBytes publishers Ina and David Steiner totals $55.7 million in compensation and charitable commitments, according to the Steiners’ law firm. The deal ends a civil case over a 2019 harassment campaign that led to criminal convictions of former eBay employees and contractors.

Scalli Murphy Law said eBay will pay $46.15 million in compensation to the Steiners, a Natick, Massachusetts, couple who run the e-commerce news site EcommerceBytes. Former eBay CEO Devin Wenig will pay $2 million, former Senior Vice President of Global Operations Wendy Jones will pay $500,000, and former Chief Communications Officer Steve Wymer will pay $50,000, the firm said.

The settlement also includes $6 million in charitable donations from eBay and a $1 million contribution by Wenig to a First Amendment rights charity in Ina Steiner’s name, according to the law firm. Scalli Murphy Law said separate settlements were reached with other eBay employees named in the civil action.

What was the eBay cyberstalking settlement about?

The case centered on a campaign against Ina and David Steiner after EcommerceBytes published coverage involving eBay. According to earlier criminal filings and the Steiners’ lawsuit, the conduct included sending live cockroaches, a funeral wreath, a book about coping with a spouse’s death and a bloody pig mask to the couple’s home.

The harassment also included threatening or abusive messages sent by email and on Twitter, according to the case record. Prosecutors said participants also tried to place a GPS tracker on the Steiners’ vehicle.

Cyberstalking is the use of electronic communications or related tools to harass, threaten or monitor someone. In this case, federal prosecutors treated the online messages, surveillance effort and deliveries as part of a broader intimidation campaign.

What eBay said after the settlement

Scalli Murphy Law said the main settlement with eBay and former executives was not confidential and required eBay to issue a public statement about the conduct and the company’s culture in 2019. In that statement, eBay said what happened to the Steiners was “wrong, reprehensible and should never have happened.”

eBay said it condemned the former employees who carried out the misconduct and pleaded guilty to criminal charges. The company also acknowledged an “unprofessional tone” in internal communications involving Wenig, Wymer and Jones to varying degrees.

The company said new leaders have joined since 2019 and that it has strengthened policies, procedures, controls and training. In its most recent quarterly report, eBay reported $3.1 billion in revenue and $512 million in net income.

Who was punished in the criminal cases?

Seven former eBay employees and contractors pleaded guilty in the criminal matter, according to court and Justice Department records. Former eBay security executives James Baugh, David Harville, Philip Cooke and Stephanie Popp received prison terms of 57 months, 24 months, 18 months and 12 months, respectively.

Two other defendants received a year of home confinement, and another was sentenced to time served plus a year of supervised release, according to the Justice Department. eBay itself agreed in 2024 to pay a $3 million fine and entered a deferred prosecution agreement with the Justice Department.

Wenig and Wymer were not criminally charged. The Steiners’ civil lawsuit alleged that they gave others broad authority to stop the Steiners’ reporting; the complaint quoted Wymer as saying he wanted to see “ashes” and “whatever it takes.”

An amended complaint alleged that Jones asked whether the issue could be handled “off the radar” and told a security executive to get it done without giving her the details. With the settlement reached, the Steiners filed to withdraw their complaint and close the civil case.

This story draws on original reporting from Ars Technica.