eBay's Slight Stock Gain Amid 226th Trading Volume Rank as Decade-Long Harassment Lawsuit Resolved

Market Snapshot

On February 25, 2026, eBay (EBAY) saw a modest 0.04% increase in its stock price, closing the day with a trading volume of $0.55 billion. This placed the company at 226th in daily trading activity rankings, reflecting limited investor activity relative to broader market benchmarks. The slight upward movement, while nominal, occurred amid the resolution of a high-profile civil lawsuit tied to a multiyear harassment scandal involving former employees.

Key Drivers

The settlement of a decade-long legal battle with David and Ina Steiner, a Massachusetts couple who were subjected to a coordinated harassment campaign by eBay employees, marked a pivotal development for the company. The lawsuit, filed in 2021, alleged that former employees—acting under directives from senior leadership—delivered live insects, a bloody Halloween mask, and a funeral wreath to the couple’s home, alongside in-person surveillance and cyberstalking. The case culminated in a deferred prosecution agreement in 2024, under which eBay paid a $3 million penalty to federal authorities. The recent settlement, disclosed in a court filing, averted a trial that had been scheduled for March 2026.

The legal resolution followed a criminal conviction of seven former eBay employees, including ex-global security head Jim Baugh, who received prison sentences for their roles in the harassment. Prosecutors and the Steiners had argued that the campaign originated from top executives, including former CEO Devin Wenig, who allegedly expressed frustration with the couple’s critical coverage of eBay via their newsletter, EcommerceBytes. While Wenig’s legal team maintained he had no direct involvement, court records showed he had previously directed subordinates to “take her down” in reference to Ina Steiner. The settlement, though undisclosed in terms, effectively closes a chapter on a reputational and financial liability for eBay.

The company’s response to the scandal has emphasized a commitment to addressing the “appalling conduct” of the involved employees. In 2024, eBay stated it would “do what is fair and appropriate” to compensate the Steiners, aligning with its public stance of distancing itself from the misconduct. The settlement’s timing, just days before a trial, suggests both parties sought to avoid prolonged legal and public scrutiny. For investors, the resolution may signal reduced near-term risks, though the company’s long-term reputation and governance practices remain under scrutiny.

The case also highlights broader corporate governance concerns. The fact that Wenig, who received a $57 million severance package after the harassment began, was not criminally charged has drawn criticism. Legal experts note that while the settlement resolves civil claims, it does not absolve eBay of accountability for systemic failures in oversight. The company’s ability to navigate such controversies without significant stock volatility—given the 0.04% gain—suggests market participants may view the resolution as a necessary but limited step in addressing past missteps.

Ultimately, the settlement underscores the complex interplay between corporate accountability, legal strategy, and investor sentiment. While the minimal stock movement indicates the market may not have priced the case as a major risk, the case serves as a cautionary tale for companies navigating employee misconduct and executive decision-making. For eBay, the focus now shifts to rebuilding trust with stakeholders and demonstrating structural reforms to prevent similar incidents.