Reported Earlier, "eBay Inc. To Pay $3M In Connection With Corporate Cyberstalking Campaign Targeting Massachusetts Couple" - DOJ USAO Massachusetts
Portfolio Pulse from Benzinga Newsdesk
eBay Inc. has agreed to pay a $3 million criminal penalty for a 2019 cyberstalking campaign against a Massachusetts couple and for obstructing the subsequent investigation. eBay was charged with stalking and obstruction of justice, and has entered into a deferred prosecution agreement. The company admitted to the facts and will have a corporate compliance monitor for three years. Seven former eBay employees or contractors were convicted, with sentences ranging from home confinement to 57 months in federal prison.
January 11, 2024 | 5:43 pm
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eBay Inc. has settled with the DOJ, agreeing to pay a $3 million fine and accept a corporate compliance monitor for three years due to a cyberstalking scandal.
The settlement and the negative publicity from the cyberstalking scandal could potentially harm eBay's reputation and investor confidence, leading to a short-term negative impact on the stock price. The fine itself is unlikely to have a significant financial impact on the company, but the need for enhanced compliance measures and the potential for increased scrutiny could lead to higher operational costs. The severity of the charges and the involvement of senior executives suggest a significant lapse in corporate governance, which could concern investors.
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