eBay Cyberstalking Suit Reopened After Settlement Talks Collapse, Trial Back On Table
The eBay stalking scandal civil suit is back open after settlement talks broke down, putting the company and former executives Devin Wenig, Steve Wymer and Wendy Jones once again on a possible path to trial.
Judge Patti Saris granted the Steiners’ motion to reopen the case after the parties were unable to finalize a written settlement agreement, though a new trial date has not yet been set.
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 required the company to admit to a detailed statement of facts involving six felony offenses, pay a $3 Million fine and undergo 3 years of enhanced compliance monitoring 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 suit 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 the security personnel 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 March 2, 2026 but the parties alerted the court they had reached a settlement in principle just days before jury selection would have begun, bringing the litigation to a temporary halt pending finalization.
Liz Morton
After multiple extensions, the settlement deal appears to have fallen apart, with the Steiners telling the court that “despite substantial efforts, the Parties have been unable to effectuate a written agreement consistent with their respective view of the agreed upon terms.”
The renewed possibility of trial comes at a particularly sensitive moment for eBay, as activist pressure from GameStop CEO Ryan Cohen has focused increasing scrutiny on problems at the company.
Cohen made a splash with an unsolicited $56 billion bid to buy the legacy ecommerce marketplace last month.
Liz Morton
eBay rejected the offer, but the fight isn't over yet as Cohen has continued to increase GameStop's economic exposure to eBay stock and says he's willing to take the matter directly to shareholders if needed.
As part of those activist efforts, Cohen has strategically used social media to call out issues at the company - with his posts subsequently being included in SEC rule 425 filings accessible to shareholders.
That includes a post about the Deferred Prosecution Agreement eBay signed with DOJ related to this scandal, to which Cohen commented "This is disgusting."
This is disgusting https://t.co/US6PRIirMN
— Ryan Cohen (@ryancohen) May 7, 2026
Importantly, there are four current eBay board members who were also on the board when the crimes against the Steiners were committed:
- Paul Pressler: current Board Chair and Chair of the Corporate Governance and Nominating Committee.
- Adriane Brown: Chair of Compensation and Human Capital Committee
- Perry Traquina: Chair of Risk Committee
- Logan Green: retiring at the end of his term this year
The fact that eBay kept legacy scandal-era members on the Board and elevated them to key leadership positions overseeing compensation, risk and governance will likely become fresh fodder for Cohen's activist campaign as it continues to ramp up ahead of eBay's annual shareholder meeting set for June 17, 2026.
A trial may also bring new attention to lingering corporate governance, compliance and disclosure issues around the scandal - including questions about oversight and supervision of employees, Wenig and Jones' overlapping sabbaticals during the time the crimes occurred, severance payouts without clawbacks, and disclosure of potentially material financial impacts of the litigation to investors.
Liz Morton
Changes eBay made to their Board Committee Charters just one day after the pending settlement was announced could also raise broader questions about governance and compliance at the company, both before and after the criminal events of 2019.
Liz Morton
Reopening the suit could also delay efforts by the Steiners' previous counsel, Rosemary Scapicchio, to collect on attorneys' fees and expenses she is owed for her previous work in this matter.
Scapicchio had represented the Steiners from the initial filing of the lawsuit in 2021 through May 2024, when she was replaced by lawyers at Boston-based personal injury firm Diller Law.
At the time of the switch up, Scapicchio filed a lien on any eventual judgement or settlement to secure payment.
Lawyers for the Steiners and Scapicchio appeared in a closed hearing earlier this week to update the court on the outstanding lien, but that issue is now likely back in limbo.
With the settlement no longer finalized and the case now reopened, eBay may once again face the prospect of a public trial over one of the most disturbing corporate scandals in its history - just as shareholder scrutiny of the company’s leadership, governance and board oversight is reaching a new peak.
Stay tuned for updates in this developing story and remember - VAR+ subscribers get exclusive access to the Value Added Resource eBay cyberstalking case document archive!
