eBay Settles Massachusetts Couple’s Harassment, Stalking Claims for $55.7 Million

After six years of civil and criminal charges and proceedings, online shopping company eBay and several former executives will pay a total of $55.7 million to settle claims over a relentless cyberstalking and harassment campaign targeting a Massachusetts couple.

In addition to $48.7 million in compensation for David and Ina Steiner of Natick, Massachusetts, the targets of the harassment, the settlement includes $6 million in charitable contributions to various nonprofit organizations,

The deal also includes agreements with some individual employee defendants, a public statement by eBay, and no confidentiality restrictions.

The Steiners are the founders and editors of EcommerceBytes, a trade publication that reports news on e-commerce companies to assist sellers. The harassment campaign by eBay employees began in 2018 after former CEO Devin Wenig criticized Ina Steiner for her coverage of eBay and advocated a communications strategy to expose “errors and bias” in Steiner’s reporting. Employees began to take steps to stop the reporting by EcommerceBytes.

Wenig has long maintained he did not know about the nature or details of the campaign undertaken by his subordinates. In a statement provided to Insurance Journal, he stated that the harassment was “deliberately done in secret and without my knowledge,” citing a law firm review, federal probe and the security officer’s sworn testimony as support for his claim.

“The Steiners’ right to publish content was always protected by the First Amendment, and protection of the press and the right to free speech are causes I have long supported and defended. I’m pleased that a meaningful portion of my settlement will go directly to a non-profit committed to protecting freedom of the press,” Wenig further stated.

According to court documents, the effort escalated into a coordinated campaign of threats to kill, terrorize and stalk the Steiners in order to stop them from reporting on eBay. The employees created a fake Twitter handle pretending to be an eBay seller, and directly threatened Ina Steiner to stop reporting on eBay. They sent graphic and vulgar message along with disturbing packages, which included live spiders, cockroaches, a bloody pig mask, a funeral wreath, pornographic magazines, and a book entitled “Grief Diaries: Surviving Loss of a Spouse” sent directly to David Steiner.

The complaint further maintains that eBay employees publicized the couple’s home address, tailed the Steiners in a black van and other rental vehicles, and followed David Steiner when he left the residence.

Fearing for their lives, the Steiners installed surveillance cameras to monitor anyone, according to their complaint.

The harassers attempted to install a GPS tracking device on the couple’s vehicle. That attempt was reported to the local police and triggered the legal proceedings including an investigation by the FBI.

Federal prosecutors brought criminal charges which led to six eBay employees and a contractor ultimately pleading guilty for their roles in the terror campaign. Also, eBay paid $3 million to end the federal criminal case.

Several eBay executives who the Steiners maintain bore some responsibility escaped consequences.

In 2019, while the harassment campaign was still underway, the Steiners contacted Scalli Murphy Law firm seeking help. In 2021, the Steiners brought their civil suit led by Scalli Murphy Law and other firms.

“This case was always about more than obtaining financial recovery. From the beginning, our clients wanted to uncover the truth, protect journalists and publishers, hold those responsible accountable, deter future corporate misconduct, and help ensure others would never have to endure what they experienced,” said the Steiners’ attorney Christopher Murphy of Scalli Murphy in announcing the settlement.

“Through years of discovery, motion practice and trial preparation, we were able to accomplish those objectives while securing meaningful compensation for two wonderful people. We believe this resolution sends a clear message that corporations and their executives cannot engage in this type of misconduct without facing significant consequences.”

According to Scalli Murphy, details of the settlement include:

• The plaintiffs will receive $48.7 million in compensation, including $46.15 million from eBay, $2 million from former eBay executive CEO Devin Wenig, $500,000 from former eBay executive Wendy Jones, and $50,000 from former eBay executive Steve Wymer.
• eBay will fund $6 million in charitable contributions to various nonprofit organizations. Former eBay executive CEO Devin Wenig will contribute an additional $1 million to a charity dedicated to protecting First Amendment rights in the name of Ina Steiner.
• eBay will issue a strongly-worded public statement regarding the conduct of former eBay CEO Devin Wenig and former eBay executives Steve Wymer and Wendy Jones in connection with the events occurring in Natick, Massachusetts and the culture of the company in 2019.