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eBay Reaches Settlement With Journalists Targeted in Harassment Case

A confidential deal prompted a federal judge to dismiss the Steiners’ 2021 lawsuit, with 60 days to reopen the case if the agreement is not finalized.

Overview

  • U.S. District Judge Patti Saris dismissed the case on Feb. 25 after both sides reported a settlement, and the terms were not disclosed.
  • David and Ina Steiner, who publish the EcommerceBytes newsletter, had sought nearly $500 million in damages and were days from trial when the agreement was reached.
  • Federal prosecutors previously charged seven former eBay employees over the scheme; most pleaded guilty and received prison terms or home confinement, including James Baugh’s nearly five-year sentence and David Harville’s two-year term.
  • Court filings detailed deliveries of live cockroaches and spiders, a funeral wreath, and a bloody pig mask, along with threats, in-person surveillance, and a plan to install a GPS device.
  • In 2024, eBay entered a deferred prosecution agreement that carried a $3 million criminal penalty, and the company has said the former employees’ misconduct was wrong.