eBay And Former Execs Agree To Pay $56 Million For Trying To ‘Crush’ A Journalist

from the attacks-on-a-free-press dept

For much of Techdirt’s nearly three decades in existence we’ve covered attacks on the media by the rich and powerful. And sometimes we’ve been on the receiving end of such attacks ourselves. But I have never seen or heard of anything quite as extreme as what happened to Ina and David Steiner, proprietors of the website eCommerceBytes. As we and many others chronicled, the story that came out sounded impossible.

But now it’s finally concluded, with eBay and three of its former top execs agreeing to pay the Steiners nearly $49 million, plus another $7 million in charitable commitments — about $56 million total, for the horrors they put them through in response to (barely) critical reporting.

The Steiners ran a small online trade publication covering eBay, mostly focused on helping sellers on the site. For years they had a good relationship with the company itself, but in the late 2010s, the company was struggling and under new management, and its execs started to get annoyed at what they saw as critical coverage of the company by the Steiners (for example, questioning why a company that was struggling financially had decided to build a replica of an east coast bar in its headquarters).

What followed still reads like fiction. If you haven’t seen it yet, I highly recommend watching the documentary, Whatever It Takes, which tells the whole story in amazing detail, including security camera footage and getting one of the (low level) eBay employees who took part in the campaign of harassment to talk about what happened on camera.

The title of the film comes directly from a text then-CEO Devin Wenig sent to eBay’s communications boss at the time, Steve Wymer, saying that Ina Steiner needed to be taken down, “whatever it takes.” Wymer replied “we’re going to crush this lady.” According to the Steiners’ lawsuit, this was then communicated to others at the company and an operations exec, Wendy Jones, then told the company’s security boss, Jim Baugh, to take care of things “off the record,” apparently telling him she didn’t want to know any details.

This allowed Baugh to concoct an escalating campaign that started with angry DMs to Ina Steiner and moved on to shipping increasingly awful things to their home: a stack of pizzas, a preserved fetal pig, a bloody pig mask, a book about surviving the loss of a spouse followed by a funeral wreath, an envelope full of “barely legal pornography” that was (deliberately) sent to a next door neighbor. And on and on.

Multiple eBay employees also traveled to the town of Natick, Massachusetts, where the Steiners lived, repeatedly driving by their house and following the Steiners when they drove around town. They also planned to break into the garage and put a tracking device on the Steiners’ car.

As the documentary makes clear, much of this was driven by the somewhat wild imagination of Baugh, who had done private security for other tech CEOs before coming to eBay, where he moved improbably fast from the CEO’s bodyguard to running eBay’s entire global security operation. The documentary details how he pushed out most of the long-time security staff and brought in a crew of young and inexperienced female hires — at least one of whom he began a relationship with — making them watch movies about top secret operations, plying them with alcohol, and demanding total loyalty.

Bizarrely, what got them caught was the whole “going to Natick and following the Steiners around” bit, which allowed the Steiners to get a license plate which the police and FBI then used to track it back to the eBay employees. A bunch of eBay employees were arrested, all of whom eventually entered guilty pleas, and many ended up being sentenced to prison sentences, with Baugh receiving the longest at 57 months.

But the Steiners were (understandably) angry that Wenig, Wymer, and Jones were never charged. While the former execs insisted that they didn’t know this was happening, that they never would have condoned it, and that they were horrified by the news when it came out, that’s difficult to believe when so much of the evidence shows that all three were on board in a “wink, wink, nudge, nudge” way given the messages they sent between themselves and Baugh.

A few years back the Steiners filed a civil suit against eBay and those former top executives. The case was set to go to trial soon, but last week they reached a settlement, with the Steiners securing $55.7 million total — $48.7 million of it going directly to them, the rest in charitable commitments:

• The plaintiffs will receive $48.7 million in compensation, including $46.15 million from eBay, $2 million from former eBay executive CEO Devin Wenig, $500,000 from former eBay executive Wendy Jones, and $50,000 from former eBay executive Steve Wymer.
• eBay will fund $6 million in charitable contributions to various nonprofit organizations. Former eBay executive CEO Devin Wenig will contribute an additional $1 million to a charity dedicated to protecting First Amendment rights in the name of Ina Steiner.

In the end, this means that the lower level employees who did much of the dirty work ended up in jail. The top execs who set this in motion end up with small dents in their large bank accounts.

eBay’s statement on the matter is at least somewhat direct in calling what happened to the Steiners “reprehensible and should never have happened.” It also “acknowledges” what it says was “the unprofessional tone in internal communications demonstrated, to different degrees and number, by Mr. Wenig, Mr. Wymer, and Ms. Jones.” I’m not exactly sure that meets the requirements of the agreement which, according to the Steiners would include “a strongly-worded public statement regarding the conduct” of those execs from eBay.

Importantly (and kudos to the Steiners for demanding and getting this) the agreement is totally public and “contains no confidentiality provision.” This is rare in cases like this (and it’s also something we insisted on in the case we dealt with). It’s important to be able to talk about this stuff, and tragically the rich and powerful who try to take down news sites are often able to negotiate confidentiality clauses into the agreements.

For what it’s worth, Wenig and Wymer are still working in Silicon Valley, with both of them co-founding AI startups, naturally. Incredibly, Wenig’s startup supposedly provides AI tools to journalists, which is quite a pivot from directing a security goon to “take down” a journalist with “whatever it takes.” That also makes the part of the agreement of Wenig providing an additional $1 million to a charity in Steiner’s name to help protect First Amendment rights even more striking.

The fact that the defendants in this case were willing to pay so much and allow the terms of the deal to be public suggests they knew exactly how badly a public trial would make all of them look.

Kudos and congrats to the Steiners. These days especially, for most media players who are attacked by the rich and powerful for their reporting, the best you can usually hope for is to get a case dismissed. Maybe, if you’re lucky, to win an anti-SLAPP motion to get your legal fees paid. To actually win a settlement this size is almost unheard of. But the Steiners deserved it. They didn’t just face bogus SLAPP lawsuits designed to shut them down. They were legitimately terrorized in ways that have had long-lasting effects.

While the Steiners situation was extreme, it’s important to recognize that this kind of thing is the inevitable end result of the constant escalation in the past few decades of the rich and the powerful attacking the free press for daring to do accurate and critical reporting on them. The craziest bit in this story isn’t even everything that eBay employees did to the Steiners, but the fact that they were so brazen about it and so careless that they got caught doing so in a way that resulted in this kind of payout. Most attacks on the press never see the light of day, let alone allowing the media entities targeted to be able to claim restitution.

Filed Under: 1st amendment, cyberstalking, david steiner, devin wenig, free speech, harassment, ina steiner, jim baugh, journalism, steve wymer, wendy jones

Companies: ebay, ecommercebytes