David and Ina Steiner, the Natick couple behind the seller-focused newsletter EcommerceBytes, have quietly closed the book on their sprawling legal war with eBay. On Wednesday, they settled their federal civil lawsuit against the company and its former CEO, ending a long-running and sometimes gruesome dispute that started in 2019. U.S. District Judge Patti B. Saris entered an order dismissing the case after the parties told the court they had reached a deal. The terms were not disclosed, and the Steiners had sought nearly $500 million in damages.
Settlement Ends Years-Long Legal Fight
The Steiners alleged that employees in eBay’s security and intelligence unit unleashed a coordinated harassment campaign that went far beyond online trolling. According to court filings, the couple received anonymous Twitter messages, were doxxed, and were sent an array of disturbing deliveries, including live spiders, cockroaches, a bloody pig mask, and a funeral wreath. The campaign also allegedly involved in-person surveillance and an aborted attempt to plant a GPS tracker on their car.
The string of incidents in August 2019 left the Natick pair changing their routines and installing added security around their home, according to the filings. The parties formally notified the court of the settlement on Wednesday, The Boston Globe reported.
Criminal Convictions And Prison Time
The civil case played out alongside a criminal investigation that pulled back the curtain on eBay’s security shop. Federal prosecutors charged members of the company’s security team, and seven people ultimately pleaded guilty to crimes tied to the harassment campaign.
Jim Baugh, the former senior director of safety and security who investigators said led the effort, pleaded guilty and in 2022 was sentenced to 57 months in prison. Several co-conspirators received prison terms or were sentenced to home confinement. The U.S. Department of Justice laid out the charges, pleas, and sentences in its public filings.
Federal Penalty, Monitoring And Corporate Reforms
On the corporate side, eBay reached a deferred prosecution agreement with the U.S. Attorney’s Office in Boston and agreed in January 2024 to pay a $3 million criminal penalty, while admitting to a detailed recitation of the underlying facts. Under that deal, the company must submit to an independent corporate compliance monitor and implement enhancements to its compliance program over several years.
The resolution, and eBay’s response, were reported by The Associated Press, which noted the company’s statements that new leadership had strengthened policies since 2019.
Executives, Alleged Ratification And What The Suit Sought
The Steiners’ civil suit did not stop with the security staff. It named eBay along with former executives, alleging that internal communications and the tone set by senior leaders helped create or ratify the harassment campaign.
The plaintiffs sought nearly $500 million in damages, arguing that the conduct called for substantial compensatory and punitive awards. Court filings also state that former CEO Devin Wenig was asked to resign in 2019 and departed with a reported $57 million severance package. He has denied knowledge of the criminal campaign. The allegations and procedural history are detailed in filings hosted by Justia.
What The Settlement Leaves Behind
The settlement spares the Steiners a jury trial and the spectacle of a public, blow-by-blow airing of disputed evidence. It also sidesteps what would likely have been a very messy test of how far a company’s responsibility extends when its security team goes completely off the rails.
What does not go away is the paper trail. The deferred prosecution agreement and the criminal convictions remain part of the official record, and prosecutors have repeatedly stressed how serious the conduct was and how deeply it affected the couple. The Justice Department said the Steiners were “terrified to leave their house” during the campaign, and the agency’s response included both individual prosecutions and a company-level resolution through the deferred prosecution deal, according to the U.S. Department of Justice.
