eBay Inc. has agreed to pay $55.7 million to settle a lawsuit filed by David and Ina Steiner, a Massachusetts couple who were subjected to a prolonged harassment campaign by former eBay employees. The Steiners, founders of the e-commerce newsletter EcommerceBytes, alleged that eBay orchestrated a conspiracy to intimidate and silence them due to their critical reporting on the company.
The harassment began in 2019 and escalated over several months. The couple received disturbing deliveries, including live cockroaches, a funeral wreath, a bloody pig Halloween mask, and a book titled "Surviving the Death of a Spouse." Additionally, pornographic material was sent to a neighbor under David Steiner's name.
In 2020, federal prosecutors charged seven former eBay employees in connection with the harassment campaign. Most of the defendants pleaded guilty to charges such as conspiracy and cyberstalking, leading to prison terms or home confinement. In 2024, eBay agreed to pay a $3 million criminal penalty under a deferred prosecution agreement with federal authorities.
The recent settlement includes $48.7 million in compensation for the Steiners—$46.15 million from eBay and additional amounts from former top executives. An extra $7 million will be donated to nonprofit organizations, including those supporting First Amendment rights. Notably, the settlement does not contain a confidentiality provision, allowing the Steiners to discuss the case publicly.
The Steiners have expressed hope that this case will serve as a deterrent against corporate misconduct and raise awareness about the importance of protecting journalists and publishers from such harassment.
This case underscores the potential consequences for companies and their executives when engaging in retaliatory actions against individuals or organizations that provide critical coverage. The substantial settlement and public nature of the case may influence corporate policies and practices regarding interactions with the media and whistleblowers.