The eBay Stalking Saga Ends in Settlement — But Not Closure
The eBay stalking scandal civil suit has been settled just days ahead of March 2 trial date, bringing 5 year court battle to a close while many questions still linger.
The bizarre corporate plot unfolded in August 2019, targeting journalists Ina and David Steiner for their reporting on eBay at EcommerceBytes and seeking to unmask the identity of unsuckEBAY (also known as FidoMaster/Dan Davis), an anonymous source and commenter who also sparked the ire of top executives at the company.
Court records revealed sordid details of the stalking and harassment campaign that included disturbing deliveries of live insects, bloody pig masks and funeral wreaths as well as threatening messages, doxxing that ultimately escalated to in-person surveillance and an attempted break-in at the hands of high-level eBay security personnel led by Jim Baugh.
Baugh, Director of Global Resiliency David Harville, Security Manager Philip Cooke, Sr Manager Special Operations Brian Gilbert, Sr Manager Global Intelligence Stephanie Popp, Global Intelligence Manager Stephanie Stockwell, and Security Analyst Veronica Zea all pleaded guilty and were sentenced for their roles in these crimes.
eBay signed a deferred prosecution agreement with the Department of Justice that forced the company to admit to a detailed recitation of all the relevant facts involving six felony offenses with eBay paying a $3 Million fine and undergoing 3 years of enhanced compliance monitoring in order to avoid further criminal prosecution related to this matter.
But importantly, that $3 Million was paid to the US Treasury, not the victims, leaving the Steiners to pursue compensation through the civil court system.
The Steiners filed suite in 2021, naming the seven criminal defendants plus eBay, ex-CEO Devin Wenig, ex-Communications Chief Steve Wymer, ex-SVP Global Operations Wendy Jones, and security company Progressive F.O.R.C.E Concepts (PFC) and claiming direction and support for the harassment came from the very top of eBay's c-suite.
PFC had the claims against them dismissed in summary judgement and the Steiners later inked deals with Baugh, Cooke, Popp, Stockwell and Zea to release them from the lawsuit in exchange for their willingness to testify against the executive defendants.
The trial against eBay, Wenig, Wymer and Jones had been set to start January 5, 2026 but was moved to March 2 after Wenig's attorney, Abbe Lowell, claimed last minute scheduling conflicts.
Liz Morton
Now, just days before that trial was set to begin jury selection, it appears the parties have settled, with the court reporting the lawsuit has been dismissed without costs and without prejudice - but holding open the possibility it could be reopened in 60 days if the settlement is not completed within that time.
The settlement comes after a February 11 hearing where District Judge Patti B. Saris once again lamented the "daunting" logistical challenges of the multi-defendant trial, citing concerns with courtroom space, jury management, potential weather disruptions, and scheduling conflicts.
Judge Saris also made one last (apparently successful) effort to push for settlement, admonishing the parties "if there's going to be any last minute settlement...we're bringing in a lot of jurors and it would be very troubling...to have that happen Friday at noon before we impanel would be a big issue."
While the settlement may bring this suit to an end, corporate governance, compliance and disclosure issues still linger for the company - including questions about oversight and supervision of the criminal employees, overlapping sabbaticals for Wenig and Jones during the time the crimes occurred, messaging around Wenig's departure and severance package, and disclosure of potentially material financial impacts of the litigation to investors.
Liz Morton
Terms of the settlement have not been disclosed. Stay tuned for updates in this developing story.
