Massachusetts, US

E-commerce giant eBay has reached a settlement, agreeing to pay a $3 million criminal penalty in connection with a disturbing harassment and stalking case against a Massachusetts couple, reported CBS News.

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The company faced criminal charges, including stalking, witness tampering, and obstruction of justice. The Department of Justice (DOJ) revealed the details of eBay's egregious conduct and the ensuing legal actions.

The victims, Ina and David Steiner, endured threats and unsettling deliveries, including cockroaches, live spiders, a funeral wreath, and a bloody pig mask, in August 2019.

eBay's former Senior Director of Safety and Security, Jim Baugh, and six other members of eBay's security team were implicated in targeting the couple due to their involvement in publishing a newsletter critical of eBay's practices.

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Motivation behind the campaign

Executives at eBay were discontent with the newsletter's tone and content.

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Between August 5, 2019, and August 23, 2019, eBay's security team, including Baugh, orchestrated a harassment campaign to intimidate the Steiners and influence the newsletter's reporting.

The DOJ highlighted the disturbing tactics employed, ranging from sending ominous deliveries to the victims' homes to surveilling them, making threats, and even creating Craigslist posts inviting sexual encounters at their residence.

eBay admitted to the orchestrated campaign and terminated all employees involved after an internal investigation.

The company, through an independent special committee, apologised to the victims and emphasised its commitment to high standards of conduct. eBay cooperated with law enforcement authorities throughout the investigation.

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Seven eBay employees, including Jim Baugh, were convicted for their roles in the harassment campaign. Baugh received a 57-month prison sentence in September 2022.

As part of the settlement, eBay agreed to a $3 million criminal penalty. The DOJ's statement highlighted that this settlement holds eBay accountable for the distress inflicted on the victims and establishes checks and balances for a corporate culture overhaul.

(With inputs from agencies)