eBay Reaches Settlement in $500 Million Harassment Lawsuit
eBay has reached a confidential settlement with a Massachusetts couple, David and Ina Steiner, who filed a civil lawsuit seeking nearly $500 million in damages. The couple accused the tech giant of orchestrating a "bizarre and premeditated" harassment campaign that included sending live cockroaches, spiders, a bloody pig mask, and funeral wreaths to their home.
Details of the Harassment Campaign
The Steiners, publishers of the newsletter EcommerceBytes, alleged that eBay employees stalked and terrorised them at their residence in Natick, Massachusetts, in 2019. According to court filings, the harassment extended beyond physical items to include threats on social media, tailing the couple in their hometown, and sending pornographic magazines with David Steiner's name to a neighbor's address.
Additionally, employees planned to break into the couple's garage to install a GPS tracking device on their car. The campaign was reportedly motivated by anger over critical coverage in the Steiners' newsletter, which led to messages from executives describing Ina Steiner as a "biased troll who needs to get BURNED DOWN."
Criminal Convictions and Corporate Accountability
Seven former eBay employees have pleaded guilty to criminal charges related to the harassment, including conspiracy and cyberstalking. James Baugh, the company's former senior director of safety and security, was sentenced to nearly five years in prison in 2022, while another executive, David Harville, received a two-year sentence.
Both Baugh and Harville offered apologies during their sentencing, with Baugh taking full responsibility and expressing hope for forgiveness. In 2024, eBay Inc. agreed to pay a $3 million criminal penalty under a deferred prosecution agreement with federal authorities.
Executive Involvement and Legal Proceedings
The civil lawsuit also named eBay's then-CEO, Devin Wenig, accusing him of helping initiate the harassment. Court documents revealed that Wenig sent a message to a subordinate after an unfavorable EcommerceBytes article, stating, "If you are ever going to take her down … now is the time." Wenig, who left eBay with a $57 million severance package, has denied knowledge of the scheme.
U.S. District Judge Patti Saris dismissed the case on Wednesday after both parties informed the court of the settlement. The Steiners had been preparing for a trial scheduled to begin next week, but the agreement brought an end to years of legal manoeuvring. David Steiner described the ordeal as "a living hell" and warned against it becoming a blueprint for corporate responses to critical reporting.
The terms of the settlement remain undisclosed, and eBay has not commented publicly on the resolution. This case highlights significant issues of corporate misconduct and the severe consequences of harassment in the digital age.
