eBay has agreed to pay $55.7 million to settle a civil lawsuit filed by David and Ina Steiner, founders of the e-commerce news site EcommerceBytes, who were victims of a harassment campaign orchestrated by former executives and employees in 2019. The settlement includes over $46.15 million from eBay itself, $2 million from former CEO Devin Wenig, $500,000 from former executive Wendy Jones, and $50,000 from former executive Steve Wymer. Additionally, eBay will donate $6 million to charity, and Wenig will contribute $1 million to a nonprofit protecting First Amendment rights.
Harassment that Started on Twitter and Ended with Live Insects and Surveillance
The campaign, lasting two months in the summer of 2019, began with anonymous threatening Twitter direct messages and escalated to disturbing deliveries to the Steiners' home: a bloody pig mask, pornography, fly larvae, live spiders, cockroaches, a book on grieving a spouse, and a funeral wreath. eBay employees also followed the couple in a rented Dodge Caravan and posted fake classified ads on Craigslist with their home address, including invitations to swinger parties and estate sales. To cover their tracks, they sent an emergency plumber to the home. Only the intervention of local police and the FBI stopped the harassment.
Sponsored Protocol
The Role of Former Executives and Lack of Knowledge
Devin Wenig has maintained he had no knowledge of the specific actions, but allegedly ordered Steve Wymer to 'take down' Ina Steiner, referring to a communications plan. Wenig's lawyers argue it did not involve physical harassment. The civil suit gave the Steiners access to 68,000 documents, revealing a toxic corporate culture. Attorney Chris Murphy emphasized that the settlement contains no confidentiality clause, allowing the victims to speak freely.
Sponsored Protocol
Legal Precedent in Massachusetts
A key aspect of the settlement involves punitive damages. In Massachusetts, punitive damages are typically not allowed in civil harassment cases, but the Steiners' lawyers successfully argued that since eBay is domiciled in California, where such damages are permitted, they should apply. Murphy believes this is the first time this principle has been recognized in the state, setting an important precedent.
Sponsored Protocol
The Steiners continue to run EcommerceBytes from their Natick, Massachusetts home, where they have enhanced security and slept in separate rooms for fear of nighttime attacks. As discussed in a related article on corporate ethics, transparency in large corporations is crucial to prevent abuse. The settlement brings relief to the couple, but they note that only time will tell if this resolution is enough to deter similar behavior. For more details, see the original WIRED article.
