eBay to pay more than $50M to couple sent cockroaches in cyberstalking case

eBay has agreed to pay $55.7 million in compensation and charitable commitments to settle a civil lawsuit filed by a couple who alleged they were targeted by former company employees. The harassment included threats and anonymous deliveries of disturbing items, such as live insects, a funeral wreath, and a bloody pig mask.

The settlement resolves claims brought by David and Ina Steiner, e-commerce bloggers and founders of the newsletter EcommerceBytes. They accused eBay security personnel of harassing them seven years ago. The company and three former executives reached a tentative settlement in February, but it was not finalized until this month after the Steiners asked a federal judge to restore the case to the trial calendar.

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what the Steiners were subjected to by former eBay employees in 2019 was wrong, reprehensible and should never have happened.

Under the terms of the agreement, eBay will provide substantial compensation to the Steiners. Additionally, the settlement includes $7 million in charitable donations, with a portion directed to organizations that support First Amendment rights. Crucially, the agreement contains no confidentiality clause, permitting the Steiners to discuss the case publicly.

In a statement, eBay acknowledged the settlement, stating, "what the Steiners were subjected to by former eBay employees in 2019 was wrong, reprehensible and should never have happened." The company condemned the employees involved and apologized to the Steiners, emphasizing that the 2019 conduct does not represent eBay's current culture or its thousands of employees worldwide. eBay noted that new leadership and strengthened policies have been implemented since the events occurred.

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The settlement follows over six years of criminal and civil proceedings. In addition to substantial compensation for the plaintiffs, the resolution includes significant charitable commitments, personal financial contributions from former eBay executives, a public statement by eBay, and no confidentiality restrictions.