eBay To Pay $59M To Settle DOJ Inquiry On Alleged Violation Of Drug Laws In Marketplace
Portfolio Pulse from Nabaparna Bhattacharya
eBay Inc. (NASDAQ:EBAY) has agreed to pay $59 million to settle a U.S. Department of Justice inquiry over alleged violations of drug laws on its marketplace. eBay will enhance its monitoring and reporting processes but denies any wrongdoing. The settlement, which eBay has already accounted for, will be paid from cash on hand. The company also announced a workforce reduction of 9% and a cutback in contract workers. eBay's cash and investments totaled $5.4 billion as of September 30, 2023.
January 31, 2024 | 6:35 pm
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eBay settles DOJ drug law violation inquiry for $59M, denies wrongdoing, and commits to enhanced monitoring. The company has prepared for the settlement financially and plans workforce cuts.
The settlement payment and the announcement of workforce reduction may concern investors about potential operational challenges and financial impacts, leading to a negative short-term impact on eBay's stock price. However, the company's strong cash position may mitigate some concerns.
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