eBay Inc. reached a settlement agreement worth nearly $50 million with David and Ina Steiner, founders of EcommerceBytes, a newsletter covering the e-commerce industry. The settlement resolves litigation spanning more than six years related to a harassment campaign allegedly orchestrated by former company employees.
According to court filings, the Steiners were subjected to a coordinated intimidation effort that included anonymous deliveries of live cockroaches and spiders, a funeral wreath, and a bloody pig Halloween mask sent to their home. The campaign also involved cyberstalking, death threats, in-person surveillance, and plans to install a GPS device on their vehicle. Federal prosecutors alleged the harassment was triggered by coverage in the couple’s newsletter that angered certain eBay employees.
The settlement structure includes $48.7 million in direct compensation to the Steiners, with $46.15 million coming from eBay itself, $2 million from former CEO Devin Wenig, $500,000 from former Senior Vice President Wendy Jones, and $50,000 from former Chief Communications Officer Steve Wymer. Additionally, $7 million will be directed to charitable organizations, including those supporting First Amendment rights, with Wenig personally contributing $1 million to a charity established in Ina Steiner’s name.
The parties initially reached a tentative settlement in February but encountered delays in finalizing the agreement. The Steiners successfully petitioned a federal judge in June to reopen the case, leading to the finalized settlement announced. Notably, the agreement contains no confidentiality provisions, allowing the couple to discuss the case publicly. In 2020, federal prosecutors charged seven former eBay employees, most of whom pleaded guilty and received sentences including prison time and home confinement. eBay previously agreed to a $3 million criminal penalty in 2024 under a deferred prosecution agreement.
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