Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Sat Nov 12 2022 09:59:48

eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

By: Ina Steiner

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An insurance company is suing eBay and some former executives seeking a declaratory judgment over its duty to indemnify them in a civil lawsuit filed by the publishers of EcommerceBytes in July of 2021 over the 2019 cyberstalking campaign against them (Ina Steiner, David Steiner, and Steiner Associates LLC).

ACE Property and Casualty Insurance Company said it had issued a series of commercial umbrella liability policies to eBay but alleged the insurance does not apply to Knowing Violation of Rights of Another; Material Published with Knowledge of Falsity; and Criminal Acts. (Indemnify is to compensate for harm or loss.)

ACE said eBay requested coverage for the Civil Action on August 11, 2021. ACE said it disclaimed coverage to the seven defendants who pled guilty in the related criminal cases earlier this year (Veronica Zea, Philip Cooke, Stephanie Stockwell, Brian Gilbert, and Stephanie Popp, as well as Jim Baugh and David Harville). 

ACE also said it agreed in April to investigate the Civil Action for eBay, Devin Wenig (eBay's former CEO), and Steve Wymer (eBay's former Chief Communications Officer), subject to a full reservation of rights.

In Friday's court filing, ACE said its umbrella policies do not cover the civil action. As part of its basis for seeking to disclaim coverage, it quoted from a PowerPoint presentation eBay had made to the government in March of 2021:

"The eBay PowerPoint Deck contained a stated purpose to persuade the United States Department of Justice ("DOJ") that, although "DOJ could take enforcement against the company [eBay]," "a decision not to take enforcement action against eBay . . . is in the interest of justice, the victims, and the public.

"In the eBay PowerPoint Deck, eBay acknowledged "the seriousness of the misconduct and the company's responsibility." It further acknowledged, "The conduct of the seven defendants [i.e., Baugh, Harville, Popp, Stockwell, Gilbert, Cooke, and Zea] was clearly criminal, and eBay is troubled by the role here of its former-CEO [i.e., Wenig] and former Chief Communications Officer [i.e., Wymer] in particular." The eBAy Power Deck described Wymer's conduct as "Inexcusable from any employee, much less an ELT member," noted that eBay "fired [Wymer] for cause" "due to [the] Natick events" (emphasis original), and recognized that Wenig and Wymer had "contributed significantly to the crimes in Natick."

ACE stated in Friday's filing: "A binding declaration determining the rights and obligations of ACE and eBay, Wenig, and Wymer under the ACE Umbrella Policies with respect to the Civil Action is necessary, will resolve the parties' disagreement, and will facilitate any settlement efforts in the Civil Action."

In addition to its request for a declaratory judgment in its insurance coverage action, ACE is seeking an award of its interest, costs and attorneys' fees. You can read the full filing on CourtListener.

Comments (31) | Leave Comment | Permalink
Readers Comments

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: Get OFF my LAWN! This user has validated their user name.

Sat Nov 12 11:55:13 2022

I can't understand what this word salad gibberish all means - but I am hoping that it reeks of EbAy paying through the nose "Foe something"!  Haaaa

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: Mbrj201 This user has validated their user name.

Sat Nov 12 13:55:29 2022

It means ebays fines may not be covered by their insurance.  

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

This user has validated their user name. by: The End

Sat Nov 12 15:48:08 2022

Just don't let it go to your head.

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

This user has validated their user name. by: Bill

Sat Nov 12 23:56:36 2022

and recognized that Wenig and Wymer had "contributed significantly to the crimes in Natick.

There you go that is the smoking gun.  

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: Snapped This user has validated their user name.

Sun Nov 13 06:31:23 2022

Is anybody really surprised by the audacity of eBay to declare that federal interstate commerce crimes committed by their employees for which they’ve since been convicted would not “be in the interest” of the DOJ to prosecute - furthermore, that if upon getting nabbed for it and they are civilly sued for attendant damages, the expenses of defending that should be covered by insurance?

The people are vermin.  

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: postbuster This user has validated their user name.

Sun Nov 13 07:35:22 2022

FVF's paid for this.
What else are they spending stolen money for?
Did they actually try to file a claim for harm and damages?

Because how on Earth did ebay ''suffer'' from their own predatory actions?
They should also be hit with Insurance Fraud.

The company name and business that incurred ''damages'' are its own fault for employing degenerates who insist on wallowing in their own ignorance and arrogance.
They know who they hire.
Just like the Boys and Girls club knew of Steve Wymers recent history before they appointed him CEO.
And GM for taking on Devin Wenig after he ran like a coward to hide in another BOD.

Had they been awarded for this, guess who would have paid for their higher premiums?

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

This user has validated their user name. by: Rexford

Sun Nov 13 07:38:16 2022

The buck stopped with Wenig.  He's worth an estimate $54M.   Surely he can cover this.

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: papergoy This user has validated their user name.

Sun Nov 13 10:21:12 2022

Re Snapped- that's what everyone does.  No one falls on the sword- and you can't blame them for trying.  It rarely if ever works, but it's SOP.  I can't take them to task for saying that- it's no different than what every other big company does.

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: mindelec This user has validated their user name.

Mon Nov 14 00:29:34 2022

"recognized that Wenig and Wymer had "contributed significantly to the crimes in Natick"

that sounds like a chargeable crime too me...

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: Whatever This user has validated their user name.

Mon Nov 14 01:59:09 2022

Hoping this "living" nightmare will be over for you both

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

This user has validated their user name. by: Marie

Mon Nov 14 02:13:09 2022

I'm surprised they looked to their insurance to cover this hot mess.  Clearly all parties knew what they were doing was illegal.  Why any intelligent person would think that an insurance policy would cover whatever they may be charged to pay in a lawsuit is simply ridiculous.

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

This user has validated their user name. by: Marie

Mon Nov 14 02:14:35 2022

@postbuster

What are you referring to?  "What else are they spending stolen money for?"

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

This user has validated their user name. by: toolguy

Mon Nov 14 09:38:16 2022

We should get a pool together to see who can guess the closest to the settlement amount.

But my guess is it will be a non disclosure settlement agreement, we may never know how much eBay has to pay the Steiners.

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: Valaset This user has validated their user name.

Mon Nov 14 10:00:13 2022

You really need to write a book and tell the whole story...

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: spooky This user has validated their user name.

Mon Nov 14 11:40:03 2022

Insurance companies are NOT your friend. They love to advertise being there when you need them but when push comes to shove they obfuscate and do everything possible to avoid paying. But in this case, eBay has plenty of value. I hope the Steiners end up owning the company.  

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: railady This user has validated their user name.

Mon Nov 14 14:00:45 2022

I do not see why an insurance company should pay out when a crime has been committed, per the justice system convicting miscreants.  It's the same principle as if you crash your car deliberately and try to collect insurance; or if a spouse is convicted or murder of their spouse, they are not allowed to collect on the dead spouse's life insurance policy even if they are the named beneficiary. People who commit crimes aren't entitled to insurance coverage of expenses they incurred committing the crimes.  

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: railady This user has validated their user name.

Mon Nov 14 14:05:08 2022

@Marie - "Why any intelligent person would think that an insurance policy would cover whatever they may be charged to pay in a lawsuit is simply ridiculous."

Operative word "intelligent" .....   hahahahahahahahahahahahahahahahahaha

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

This user has validated their user name. by: Marie

Mon Nov 14 14:33:53 2022

@railady

Good point.  Clearly these people involved were quite lacking in this area as well as many others.

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: CT Bay This user has validated their user name.

Mon Nov 14 18:36:24 2022

Why wouldn’t the pay up ASAP and get this behind them? Will the company ever have a competent leader?

Perminate Link for eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit   eBay Sued over Insurance Claim for Civil Cyberstalking Lawsuit

by: CT Bay This user has validated their user name.

Mon Nov 14 18:37:15 2022

Lots of people don’t know how insurance works.

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