eBay, Ex-Execs Settle $56M Lawsuit Over Journalist Harassment
eBay and former executives settle $56 million lawsuit over harassment of journalists.
Why it matters: Legal counsel must understand the serious liability and reputational risks companies face when engaging in harassment or retaliation against journalists, which can lead to costly litigation and criminal charges.
- eBay and seven former employees settle lawsuit for $56 million filed by journalists Ina and David Steiner.
- Settlement includes $46 million paid directly to the Steiners and $6 million donated to free speech nonprofits.
- Seven ex-employees pleaded guilty to criminal harassment and received prison sentences up to 57 months.
- Former CEO Devin Wenig and Chief Communications Officer Steve Wymer were implicated but faced no criminal charges.
In one of the most significant corporate harassment cases in recent years, eBay and several former employees agreed to a $56 million settlement to resolve a lawsuit filed by journalists Ina and David Steiner. The journalists accused eBay personnel of coordinating an aggressive campaign in 2019 to intimidate them following critical reporting on the company.
This campaign involved sending disturbing items—including a bloody pig mask, live cockroaches, a funeral wreath, and explicit pornography—to the Steiners and their neighbors. These actions aimed to pressure and retaliate against the journalists for their investigative work.
Seven former eBay employees involved in this harassment have pleaded guilty to related criminal charges and received prison sentences, some lasting up to 57 months. Their convictions illustrate the potential personal legal consequences for individuals who engage in workplace retaliation and harassment.
The $56 million settlement breaks down into $46 million in payments directly to the Steiners and $6 million allocated to nonprofit organizations focused on defending free speech rights. While details on the charities’ use of funds remain private, the donation component highlights a commitment to supporting journalistic protections.
The case attracted attention due to the involvement of senior executives. Former CEO Devin Wenig and Chief Communications Officer Steve Wymer were implicated in the affair but were not criminally charged, underscoring challenges in proving culpability at senior management levels despite their leadership roles. eBay publicly condemned the behavior, characterizing the actions of former employees as "wrong, reprehensible and should never have happened."
This resolution emphasizes the risks corporations face in managing negative press. Beyond financial penalties, companies and their legal teams must be vigilant in preventing retaliatory misconduct that can result in criminal prosecutions, significant reputation damage, and costly settlements.
Similar cases in the past have set precedents for how companies handle employee conduct and communications with journalists, making compliance and proactive risk assessment essential for legal counsel advising large firms.
By the numbers:
- $56 million — total settlement amount
- $46 million — paid directly to journalists Ina and David Steiner
- 57 months — longest prison sentence among seven former employees involved
Yes, but: While senior eBay executives were implicated, the absence of criminal charges against them points to difficulties in legally establishing leadership accountability for employee misconduct in harassment cases.
What's next: Legal teams at major corporations will closely monitor implementation of safeguards and training programs to mitigate risks of retaliatory harassment against external parties like journalists.