eBay sued over insurance claim for cyberstalking civil suit

An insurance company is suing eBay and certain former executives for a declaratory judgment on its obligation to indemnify them in a civil action brought by the publishers of EcommerceBytes in July 2021 during 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 umbrella commercial liability policies to eBay, but alleged that the insurance does not cover knowledge of the infringement of others’ rights; Material posted with knowledge of the falsity; and criminal acts. (To compensate is to make up for damage or loss.)

ACE said eBay requested coverage for the civil action on August 11, 2021. ACE said it refused to cover the seven defendants who pleaded 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 suit for eBay, Devin Wenig (former eBay CEO) and Steve Wymer (former eBay communications director), subject to a caveat. full rights.

In Friday’s court filing, ACE said its general policies do not cover civil action. As part of his disclaimer, he cited a PowerPoint presentation that eBay gave to the government in March 2021:

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

“In eBay’s PowerPoint Deck, eBay acknowledged “the seriousness of the misconduct and corporate responsibility. He 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 its former CEO’s role here [i.e., Wenig] and former director of communications [i.e., Wymer] in particular.” The eBay Power Deck described Wymer’s conduct as “inexcusable on the part of any employee, let alone a member of the ELT,” noted that eBay “terminated [Wymer] for cause” “due to [the] events of Natick” (emphasis in original), and acknowledged that Wenig and Wymer had “significantly contributed to the crimes of Natick”.

ACE said in Friday’s filing: “A binding statement determining the rights and obligations of ACE and eBay, Wenig and Wymer under ACE’s general policies with respect to civil action is required, will resolve the disagreement of the parties and will facilitate any settlement efforts in the civil action.

In addition to its request for declaratory judgment in its action for insurance coverage, ACE seeks an award of its interest, costs and attorneys’ fees. You can read the full report on CourtAuditor.

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