eBay pays $3 million fine over live insect harassment case
eBay has agreed to pay a $3 million fine in connection with an “intimidation campaign” of harassment and stalking.
straight arrow news
E-commerce giant eBay has settled with a Massachusetts couple over a lawsuit involving alleged stalking, intimidation, and harassment, including the mailing of live cockroaches, spiders, bloody pig masks, and funeral wreaths.
David and Ina Steiner, founders of trade publication Ecommerce Byte, where the couple reports on various e-commerce companies, including eBay, filed the lawsuit in federal court in Massachusetts on July 21, 2021, “for the purpose of assisting e-commerce sellers.” The Scully Murphy law firm, which represented the Steiner family, announced the nearly $56 million settlement on its website on Monday, July 27.
“David and I agreed, both as victims who want to prevent this from happening to anyone else, and as reporters who believe in transparency, that this settlement should and should be made public,” Ina Steiner told The Associated Press. “I hope this incident will act as a deterrent.”
Mr. Steiner began targeting eBay employees in 2019 after they published “negative reporting” against the e-commerce company and “the company’s senior management,” according to the lawsuit obtained by USA TODAY, which ended a six-year lawsuit.
Under the settlement agreement, the couple will receive $48.7 million in compensation, including $46.15 million from eBay and $2.55 million from the former eBay executive. The remainder of the settlement, approximately $7 million, will be donated to nonprofit organizations and “charities dedicated to protecting First Amendment rights in Inna Steiner’s name.”
USA TODAY reached out to Steiner’s attorney for comment on July 29.
Tentative agreement announced in February
The agreement announced July 27 follows a tentative settlement in February that ultimately fell apart before the parties reached a revised agreement this month, according to the Associated Press.
David Steiner told the MetroWest Daily News that the couple had wanted to take the case to trial, but decided against prolonging the case for several more years, possibly with an appeal. The couple then asked a federal judge in June to put the case back on trial, and a new settlement was ultimately reached in July.
eBay, employees initially face criminal charges
In 2020, the U.S. Department of Justice, through the U.S. Attorney’s Office for the District of Massachusetts, indicted a former eBay employee and former eBay contractor on charges of “terrorist activities.” Each defendant would ultimately plead guilty to multiple charges, including conspiracy and cyberstalking, and would then be sentenced to prison or home confinement.
Criminal charges were also filed against eBay in 2024. However, the company agreed to pay a criminal fine of up to $3 million and take significant remedial action.
The campaign, led by former eBay employees, began with threatening messages and “vulgar emails” on social media and escalated to the delivery of live insects, bloody pig masks, pornography, funeral wreaths and books about surviving the death of a spouse. Prosecutors say the employees posted fake Craigslist ads using the couple’s home addresses, sent explicit magazines to neighbors, conducted in-person surveillance and discussed installing GPS tracking devices on the Steiners’ cars.
The Steiners sued eBay and the defendants in 2021, alleging that eBay conspired to intimidate and silence them over their journalism. During the civil proceedings, the couple gained access to about 68,000 internal documents, which helped them better understand the movement’s development, Ina Steiner said.
eBay apologizes to end lawsuit
When the Steiners filed their lawsuit in 2021, eBay said “the tortious actions of our former employees were wrong” and that it would “take fair and appropriate steps to resolve what the Steiners experienced.”
The company expressed similar sentiments in a new statement on July 28, apologizing for the incident and calling the former employee’s actions “wrong” and “reprehensible.” The company also acknowledged the “unprofessional tone” of internal communications by former executives, said their actions were not reflective of the company’s current culture, and said it has since replaced leadership and strengthened its ethics policies.
The Steiners said they hope the resolution will protect journalists and stop companies from using threats to silence critical reporting.
“I think we accomplished a lot,” David Steiner told MetroWest Daily News. “We look forward to spending the time we have left on this earth doing what we love to do and enjoying life.”
Reporter Anthony Thompson can be reached at ajthompson@usatodayco.com or X @athompsonUSAT..
