eBay argued this week that a whistleblower claim made by a former employee should be stayed pending arbitration. In its motion filed in federal court on July 2, 2026, eBay alleged plaintiff Paige Williams signed a Mutual Arbitration Agreement in September 2014 that "covers all disputes arising from the employment relationship and the termination of that relationship."

In her lawsuit filed in May, the plaintiff alleged among other claims that she had "raised concerns about the Promoted Listings program" to her leadership team, including conduct that she "reasonably believed constituted serious ethical and legal violations." However, she alleged that she "reasonably feared escalating this report to eBay's ethics or compliance team" due to eBay's "documented pattern of retaliating against employees who raised concerns through formal channels."

eBay is currently being monitored by an independent corporate compliance monitor as required by the Department of Justice as part of a deferred prosecution agreement eBay entered into in January 2024; presumably that compliance monitoring expires sometime next year.

The former employee alleged the following in her May 2026 lawsuit regarding eBay's Promoted Listing program:

49. Plaintiff raised concerns about the Promoted Listings program - one of eBay's largest revenue streams - to her leadership, reporting that she had become aware of conduct she reasonably believed constituted serious ethical and legal violations. Due to Defendant's...