EBay seeks judge's guidance to settle with victims of harassment campaign
By Nate Raymond
July 18 (Reuters) -EBay EBAY.O on Thursday sought court guidance to help it settle a lawsuit by a Massachusetts couple who were the victims of a bizarre stalking and harassment campaign carried out by several of its now-former employees after an online newsletter they published drew the ire of top executives.
The request, made by a lawyer for the e-commerce company during a hearing in Boston, came shortly before a different judge sentenced the last of the seven former eBay workers who had pleaded guilty to participating in the cyberstalking scheme.
Brian Gilbert, who served as senior manager of special operations for eBay's global security team and has been diagnosed with terminal cancer, was sentenced to no prison time and a $20,000 fine by U.S. District Judge William Young.
He was one of the seven ex-eBay workers who were charged in 2020 and who all pleaded guilty to participating in a campaign that prosecutors said aimed to silence David and Ina Steiner, whose newsletter EcommerceBytes had been deemed by top executives to be critical of their company.
Other employees have received sentences of as high as 57 months in prison for their roles in an extensive campaign in 2019 that involved sending the Steiners cockroaches, fly larvae and a bloody Halloween pig mask and surveiling their home in Natick, Massachusetts.
San Jose, California-based eBay agreed in January to pay $3 million under a criminal deferred prosecution agreement. But the company and some ex-eBay executives and employees remain defendants in a separate civil lawsuit by the Steiners.
During a hearing before U.S. District Judge Patti Saris, eBay counsel Jack Pirozzolo of Sidley Austin said the company was seeking to settle the lawsuit.
But he said it became clear during a mediation last month that the parties needed guidance from Saris on a key issue if they were to resolve the case: Whether the Steiners are entitled to seek punitive damages.
Under Massachusetts law, the Steiners would not be entitled to seek punitive damages against eBay, but the Steiners' lawyers, led by Andrew Finkelstein of Finkelstein & Partners, contend California law would govern that damages claim.
"Is this the barrier to settlement?” Saris asked.
"I would not say it's the only barrier but I would say that it became a significant issue in settlement discussions,” Pirozzolo said.
The judge asked the parties to propose a schedule to brief the issue so she could address it before an expected trial next year.
The case is Steiner v. eBay Inc, U.S. District Court, District of Massachusetts, No. 21-cv-11181.
For the Steiners: Andrew Finkelstein of Finkelstein & Partners
For eBay: Jack Pirozzolo of Sidley Austin
Reporting by Nate Raymond in Boston
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