EBay Executives and Company Settle Landmark Cyberstalking Case for $55.7 Million, Including Personal Contributions and Public Apology

EVERETT, Mass. – July 27, 2026 – Scalli Murphy Law, P.C. today announced a significant civil rights settlement that resolves the extensive civil litigation brought by David and Ina Steiner, the founders of the news site EcommerceBytes, against eBay, Inc., several former eBay executives, and other employees. The case stemmed from a notorious cyberstalking and harassment campaign orchestrated by the company in 2019, aimed at silencing the Steiners’ investigative reporting. This historic resolution includes substantial financial compensation for the plaintiffs, significant charitable commitments, personal financial contributions from former eBay executives, a public statement of apology from eBay, and importantly, no confidentiality restrictions, allowing the full details of the settlement to be made public.

The settlement marks the culmination of over six years of complex legal proceedings, encompassing both criminal and civil actions. The resolution underscores a commitment to justice, not only through financial redress but also through impactful corporate and personal accountability.

Scalli Murphy Law, P.C. was the initial legal firm engaged by the Steiners. In 2019, as the harassment campaign was actively underway, David and Ina Steiner sought legal assistance from the firm. Scalli Murphy Law played a crucial role in supporting the Steiners, enabling them to involve the Natick police department and investigators from the Federal Bureau of Investigation (FBI).

The severity of the actions led to a federal investigation. The United States Department of Justice, through the U.S. Attorney’s Office for the District of Massachusetts, subsequently indicted several former eBay employees for their involvement in the campaign. Those indicted included Jim Baugh, David Harville, Brian Gilbert, Stephanie Popp, Stephanie Stockwell, Philip Cooke, and former eBay contractor Veronica Zea. Each of these individuals ultimately pleaded guilty to their roles in orchestrating the terror campaign against the Steiners.

eBay, as a corporate entity, also faced criminal charges. The company entered into a Deferred Prosecution Agreement with the U.S. Department of Justice. As part of this agreement, eBay committed to paying the maximum available criminal fine of $3 million and to implement comprehensive corrective actions to prevent future misconduct.

Following these developments, the Steiners initiated a civil lawsuit in 2021 against all the named defendants, seeking damages for the harm they endured.

In the spring of 2024, after a change in legal representation, the Steiners retained a formidable legal team to spearhead their civil litigation. This team comprised Scalli Murphy Law, Diller Law LLP, Finkelstein & Partners LLP, and Finkelstein, Blankinship, Frei-Pearson & Garber, LLP. This collaborative effort aimed to leverage their combined expertise to achieve a just outcome for the plaintiffs.

Christopher Murphy of Scalli Murphy Law articulated the overarching objectives of the litigation. "This case was always about more than obtaining financial recovery," Murphy stated. "From the beginning, our clients wanted to uncover the truth, protect journalists and publishers, hold those responsible accountable, deter future corporate misconduct, and help ensure others would never have to endure what they experienced."

He elaborated on the successful achievement of these goals. "Through years of discovery, motion practice and trial preparation, we were able to accomplish those objectives while securing meaningful compensation for two wonderful people. We believe this resolution sends a clear message that corporations and their executives cannot engage in this type of misconduct without facing significant consequences."

The settlement terms, as announced by Scalli Murphy Law, P.C., are designed to provide comprehensive redress and to serve as a deterrent to similar corporate malfeasance. While specific details of the compensation are not publicly disclosed, the announcement emphasizes the substantial nature of the financial award and the inclusion of significant charitable contributions. These charitable commitments are intended to support organizations that promote press freedom, combat online harassment, and advocate for civil rights.

A crucial aspect of the settlement is the personal financial contributions made by former eBay executives who were implicated in the cyberstalking campaign. This provision signifies a direct acknowledgment of personal responsibility by individuals who held leadership positions within the company. Furthermore, eBay has issued a public statement expressing regret for the actions that led to the litigation. This public statement, coupled with the absence of confidentiality restrictions, allows for transparency and serves as a public record of the company’s acknowledgment of its role in the events.

The cyberstalking campaign against David and Ina Steiner was an aggressive and multifaceted effort. It included the use of sophisticated surveillance tactics, the dissemination of sexually explicit and disturbing materials to the Steiners’ homes, and the intent to disrupt their personal lives and professional activities. The campaign was designed to instill fear and silence their critical reporting on eBay’s business practices.

The legal battle highlighted the vulnerabilities faced by independent journalists and publishers in the digital age. The Steiners’ dedication to their reporting, despite facing intense pressure and threats, became a focal point of the case. Their perseverance in seeking justice has set a precedent for holding powerful corporations accountable for the actions of their executives and employees.

The resolution of this case is expected to have a significant impact on corporate governance and accountability, particularly concerning the ethical responsibilities of companies and their leadership in the digital sphere. It serves as a stark reminder that attempts to suppress journalistic inquiry through illegal and unethical means will be met with rigorous legal challenges and substantial consequences.

Additional background information regarding the litigation, the criminal proceedings, and the specifics of the settlement is available upon request from the legal counsel involved.

Media Contact:
Ellen Keiley
EMK Consulting Group
[email protected]

Christopher Murphy is available for interviews and comment upon request.

Note from the editor: Comments can be left on the EcommerceBytes Blog.