eBay Inc. EBAY has reached an agreement with the U.S. Department of Justice to resolve the regulator’s inquiry regarding products sold on the eBay marketplace alleged to violate specific laws administered by the Drug Enforcement Administration.
Under the terms of the agreement, eBay will pay $59 million and implement enhanced processes regarding its monitoring and reporting of listings that violate eBay’s terms of service.
However, the company denied the DOJ’s allegations, and the settlement does not include any admission of wrongdoing.
eBay said it has accrued for probable losses in connection with this DOJ inquiry. The company plans to fund the payment contemplated in the settlement through cash on hand.
Last week, the e-commerce marketplace operator said in a company statement that it will slash its workforce by approximately 1,000 roles or an estimated 9% of full-time employees.
Additionally, the company said it plans to scale back the number of contracts within the alternate workforce over the coming months.
The company’s cash equivalents and non-equity investments portfolio totaled $5.4 billion as of September 30, 2023.
“While eBay acted lawfully and denies the DOJ’s allegations, we determined that this agreement is in the best interest of the company and its shareholders as it avoids the costs, uncertainty and distraction associated with protracted litigation,” the company said.
Price Action: EBAY shares are trading lower by 0.68% to $41.67 on the last check Wednesday.
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