eBay's $55.7 Mn Settlement: The Cyberstalking Case Involving Journalists, Cockroaches And Threats Explained

eBay has agreed to a settlement package worth $55.7 million in a long-running cyberstalking and harassment case brought by Massachusetts couple David and Ina Steiner, publishers of the e-commerce newsletter EcommerceBytes.

The couple alleged that former eBay employees targeted them with threats, surveillance and disturbing anonymous deliveries, as per the Associated Press (AP).

The agreement brings to a close more than six years of criminal and civil proceedings linked to a harassment campaign that targeted the Massachusetts-based couple in 2019.

The settlement includes compensation payments as well as charitable donations, while allowing the Steiners to discuss the case publicly because it contains no confidentiality provision.

"David and I were on the same page that this settlement should and must be made public — as victims who want to prevent something like this from ever happening to anyone else, and as reporters who believe in transparency," Ina Steiner said, as per AP.

"We hope that this case will serve as a deterrent," she added.

Why Were The Steiners Targeted?

EcommerceBytes regularly reported on online marketplaces, including eBay's policies and management decisions. Federal prosecutors alleged that some senior company officials were frustrated by the publication's coverage and comments posted by readers.

Court records and prosecutors said the controversy stemmed from communications involving senior executives and members of eBay's security team, as per Moneycontrol.

Former chief executive Devin Wenig was not criminally charged and has maintained that he was advocating a public-relations response rather than the actions that followed.

How Did The Harassment Campaign Unfold?

The campaign began with threatening messages on social media before escalating into anonymous deliveries.

The Steiners received live cockroaches and spiders, a funeral wreath, a bloody pig Halloween mask and a book about surviving the death of a spouse, as per AP.

Employees also arranged deliveries of a preserved fetal pig, sent pornographic material in David Steiner's name to neighbours and posted online advertisements directing strangers to the couple's home.

Prosecutors further alleged that members of the group conducted surveillance and planned to install a GPS tracking device on the couple's vehicle.

"I could not conceive that a company I had been covering for the past two decades had tried to terrorise us into stopping our reporting," Ina Steiner said, as per AP.

Investigations, Convictions And Settlement

The harassment operation eventually led to criminal charges against seven former eBay employees and contractors.

Most pleaded guilty to offences including cyberstalking, conspiracy, witness tampering and obstruction-related charges, receiving prison terms or home confinement.

eBay itself entered a deferred prosecution agreement with US authorities in 2024, paid a $3 million criminal penalty and agreed to compliance monitoring.

Under the latest settlement, the Steiners will receive $48.7 million, including $46.15 million from eBay, AP reported.

Former executives Wenig, Wendy Jones and Steve Wymer will contribute $2 million, $500,000 and $50,000, respectively.

Another $7 million will be directed towards charitable causes, including organisations supporting First Amendment rights.

"What the Steiners were subjected to by former eBay employees in 2019 was wrong, reprehensible and should never have happened," eBay reiterated its stance on Tuesday on the matter, as per AP.