eBay Faces Potential Class Action From Shareholders In Wake Of EPA Claims

Liz Morton
Liz Morton


UPDATE 10-24-23

Kehoe Law is the latest firm to throw their hat in the ring, opening their own investigation into potential breach of fiduciary duties by eBay officers and directors.

eBay Stock - Investors of eBay Encouraged to Contact Kehoe Law Firm, P.C. - EBAY

PHILADELPHIA, PA / ACCESSWIRE / October 24, 2023 / Kehoe Law Firm, P.C. is investigating whether certain directors and officers of eBay Inc.breached their fiduciary duties to eBay and its shareholders and whether investors of eBay stock suffered damages as a result.



UPDATE 10-20-23

Scott+Scott Attorneys at Law LLP have also announced they are investigating eBay's Directors and Officers for breach of fiduciary duties in regard to this DOJ/EPA lawsuit.

INVESTIGATION ALERT: Scott+Scott Attorneys at Law LLP Investigates eBay Inc.’s Directors and Officers for Breach of Fiduciary Duties – EBAY
NEW YORK, Oct. 20, 2023 (GLOBE NEWSWIRE) --…

Scott+Scott Attorneys at Law LLP (“Scott+Scott”), an international securities and consumer rights litigation firm, is investigating whether certain directors and officers of eBay Inc. (“eBay”) (NASDAQ: EBAY) breached their fiduciary duties to eBay and its shareholders. If you are an eBay shareholder, you may contact attorney Joe Pettigrew for additional information toll-free at 844-818-6982 or JPETTIGREW@SCOTT-SCOTT.COM.

Scott+Scott is investigating whether members of eBay’s board of directors or senior management failed to manage eBay in an acceptable manner, in breach of their fiduciary duties to eBay, and whether eBay and its shareholders have suffered damages as a result.

On September 27, 2023, the U.S. Department of Justice, on behalf of the U.S. Environmental Protection Agency, filed a complaint against eBay for unlawfully selling and distributing hundreds of thousands of products in violation of several federal statutes, including the Clean Air Act, the Federal Insecticide, Fungicide, Rodenticide Act, and the Toxic Substances Control Act. These products include aftermarket defeat devices, often used by so-called “coal rollers”, which significantly increase pollution emissions, and unregistered and potentially dangerous pesticide products.

What You Can Do

If you are an eBay shareholder, you may have legal claims against eBay’s directors and officers. If you wish to discuss this investigation, or have questions about this notice or your legal rights, please contact attorney Joe Pettigrew toll-free at 844-818-6982, or JPETTIGREW@SCOTT-SCOTT.COM.

The Schall Law Firm advises eBay shareholders it is undertaking an investigation into whether the company breached its fiduciary duties in the wake of Department of Justice and Environmental Protection agency claims involving pesticides, restricted and prohibited chemicals, and illegal devices that defeat pollution controls on motor vehicles sold on the platform.

eBay Inc. | Schall Law Firm
Schall Law Firm

Los Angeles, September 27, 2023 — The Schall Law Firm, a national shareholder rights litigation firm, announces that it is investigating claims on behalf of investors in eBay Inc. (“eBay” or “the Company”) (NASDAQ: EBAY) for potential breaches of fiduciary duty on the part of its directors and management.

The investigation focuses on determining if the eBay board breached its fiduciary duties to shareholders. The Associated Press reported on September 27, 2023, that, “The U.S. Justice Department filed a civil complaint against eBay, claiming the online marketplace unlawfully sold and distributed hundreds of thousands of products like pesticides and motor vehicle emission-evading devices that violate environmental laws.”

The press release encourages shareholders to contact Brian Schall of the Schall Law Firm to discuss their rights free of charge.

The DOJ filed the lawsuit on behalf of the EPA yesterday, alleging eBay unlawfully sold and distributed hundreds of thousands of products in violation of the Clean Air Act (CAA); the Federal Insecticide, Fungicide, and Rodenticide Act (FIFRA) and the Toxic Substances Control Act (TSCA).

EPA Sues eBay Over Sales Of Pesticides, Chemicals & Anti-Pollution Control Devices
EPA files lawsuit against eBay for failing to stop sales of pesticides, chemicals & devices to defeat pollution controls.

The complaint alleges that eBay sold, offered for sale or caused the sale of more than 343,000 aftermarket defeat devices, which defeat motor vehicle emission controls, a violation of the CAA.

Aftermarket defeat devices significantly increase pollution emissions – including carbon monoxide, nitrogen oxides, particulate matter and nonmethane hydrocarbons – that harm public health and impede efforts by the EPA, states, Tribes and local agencies to plan for and attain air quality standards.

The complaint also alleges that eBay has violated FIFRA by unlawfully distributing or selling at least 23,000 unregistered, misbranded or restricted-use pesticide products, even in violation of a stop sale order EPA issued to eBay in 2020 and amended in 2021.

Examples include a high toxicity insecticide banned in the United States, restricted use pesticides that only certified applicators may apply and products fraudulently claiming to protect users against the SARS-CoV-2 virus.

Finally, the complaint alleges that eBay has distributed over 5,600 items in violation of the TSCA Methylene Chloride Rule. The rule prohibits retailers from distributing in commerce products that contain methylene chloride for paint and coating removal to prevent unreasonable risks, including death, presented by these types of products.

The suit seeks injunctive relief to enjoin eBay from further violations, as well as civil penalties for CAA violations.

The lawsuit does not come as a big surprise as eBay disclosed in a 10-K filing back in February they were setting aside ~$64 Million for litigation and other legal matters including the ongoing cyberstalking civil case and investigations by the EPA and DEA.

An EPA lawsuit is particularly embarrassing as eBay has consistently championed themselves as a leading ESG (environmental, social and governance) company, heavily promoting their sustainability efforts with recommerce and pre-loved fashion.

It's hard to see how failing to prevent the sale of restricted and prohibited toxic substances and motor vehicle bypass devices that increase polluting emissions fits with those supposed ESG commitments.

If Shall or any other shareholder rights litigation firms are investigating fiduciary breaches by eBay's Board of Directors, they may want to look into due diligence and disclosure failures in last year's acquisition of trading card marketplace TCGplayer as well.

eBay Chief Accounting Officer Exit Amplifies TCGPlayer Due Diligence Concerns
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eBay issued a statement responding to the charges with their usual boilerplate language about taking consumer safety on the site "very seriously" and proclaiming they will vigorously defend themselves against these claims.

eBay Issues Statement Responding to U.S. Department of Justice Lawsuit
eBay responded to the filing of a complaint by the U.S. Department of Justice (DOJ) seeking to hold eBay liable for the sale of products alleged to violate certain laws administered by the Environmental Protection Agency.

Maintaining a safe and trusted marketplace for our global community of sellers and buyers is a fundamental principle of our business at eBay. We dedicate significant resources, implement state-of-the-art technology and ensure our teams are properly trained to prevent prohibited items from being listed on the marketplace.

Indeed, eBay is blocking and removing more than 99.9% of the listings for the products cited by the DOJ, including millions of listings each year. And eBay has partnered closely with law enforcement, including the DOJ, for over two decades on identifying emerging risks and assisting with prevention and enforcement.

The Government's actions are entirely unprecedented and eBay intends to vigorously defend itself.

With the FTC filing a sweeping antitrust lawsuit against Amazon earlier this week, could this be just the start of increased regulatory scrutiny for online marketplaces?


Liz Morton Twitter Facebook LinkedIn

Liz Morton is a seasoned ecommerce pro with 17 years of online marketplace sales experience, providing commentary, analysis & news about eBay, Etsy, Amazon, Shopify & more at Value Added Resource!