eBay Inc. Issues Statement Regarding Indictments of Previously Terminated Employees

Rhea-AI Summary

eBay Inc. (NASDAQ: EBAY) addressed indictments against former employees related to improper actions toward a blogger and her husband, stating that no current employees were implicated. eBay initiated an investigation in August 2019 after being notified by law enforcement, resulting in the termination of involved staff, including the former Chief Communications Officer. The company's internal inquiry found inappropriate communications from ex-CEO Devin Wenig, but no evidence of his prior knowledge or authorization of the actions. eBay emphasized its commitment to ethical standards and apologized to the affected individuals.

Positive

• eBay took immediate action by launching a thorough investigation upon notification by law enforcement.
• All involved employees were terminated, demonstrating eBay's commitment to ethical conduct.
• The company cooperated fully with law enforcement authorities during the investigation.

Negative

• Former CEO Devin Wenig had inappropriate communications related to the incident, which may impact stakeholder trust.
• The situation raises concerns about the company's internal controls and employee conduct oversight.

SAN JOSE, Calif., June 15, 2020 /PRNewswire/ -- eBay Inc. (NASDAQ: EBAY) today commented on indictments separately announced by the U.S. Attorney's Office in Massachusetts against several former eBay employees. Neither the Company nor any current eBay employee was indicted. In order to preserve the integrity of the government's investigation, eBay did not previously communicate about this matter. In light of today's public announcement by the government, eBay is now addressing this matter publicly.

eBay was notified by law enforcement in August 2019 of suspicious actions by its security personnel toward a blogger, who writes about the Company, and her husband. eBay immediately launched a comprehensive investigation, which was conducted with the assistance of outside legal counsel, Morgan, Lewis & Bockius LLP. As a result of the investigation, eBay terminated all involved employees, including the Company's former Chief Communications Officer, in September 2019.

The independent special committee formed by eBay's Board of Directors to oversee the Company's investigation into this matter said, "eBay took these allegations very seriously from the outset. Upon learning of them, eBay moved quickly to investigate thoroughly and take appropriate action. The Company cooperated fully and extensively with law enforcement authorities throughout the process. eBay does not tolerate this kind of behavior. eBay apologizes to the affected individuals and is sorry that they were subjected to this. eBay holds its employees to high standards of conduct and ethics and will continue to take appropriate action to ensure these standards are followed."

The Company noted that the internal investigation also examined what role, if any, the Company's CEO at the time of the incident, Devin Wenig, may have had in this matter. The internal investigation found that, while Mr. Wenig's communications were inappropriate, there was no evidence that he knew in advance about or authorized the actions that were later directed toward the blogger and her husband. However, as the Company previously announced, there were a number of considerations leading to his departure from the Company.

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SOURCE eBay Inc.

FAQ

What happened with eBay and the recent indictments?

eBay commented on indictments against former employees related to improper actions towards a blogger, emphasizing no current employees were implicated.

What were the consequences for the employees involved in the eBay incidents?

All employees involved, including the former Chief Communications Officer, were terminated following an investigation.

How did eBay respond to the allegations against its employees?

eBay launched a comprehensive investigation and collaborated with law enforcement, taking immediate action against those involved.

What did eBay say about former CEO Devin Wenig's role in the incident?

While Wenig's communications were deemed inappropriate, the investigation found no evidence that he authorized the actions against the blogger.