Seagate Settles $175M Lawsuit Over Huawei Sales
Seagate Technology settled a $175 million lawsuit for allegedly defrauding shareholders by violating U.S. export laws via sales to Huawei. The lawsuit claimed Seagate inflated profits by not disclosing over $1.1 billion in hard disk sales. The settlement awaits court approval, despite Seagate denying wrongdoing.
Seagate Technology has reached a $175 million settlement over a lawsuit alleging it defrauded shareholders by concealing that it violated U.S. export control laws through sales to Huawei Technologies. This settlement requires approval from a federal court in San Francisco.
The lawsuit, led by pension funds from several countries, claimed that Seagate enhanced its profits and stock prices by hiding sales of more than 7.4 million hard disk drives to the Chinese tech giant. Although agreeing to the settlement, Seagate denied any wrongdoing.
The company's alleged violations resulted in a $300 million penalty from the U.S. Department of Commerce. The settlement is part of a broader legal context involving U.S. restrictions on Huawei, which remains blacklisted for national security concerns. The proposed class period spans from September 14, 2020, to April 19, 2023.
(With inputs from agencies.)
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