Seagate Technology Holdings PLC (STX) Violated the U.S. Export Administration Regulations
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Seagate Technology Holdings PLC (NASDAQ: STX) securities between September 15, 2020 and October 25, 2022. Seagate is a leading global supplier of data storage products, including hard disk drives (“HDDs”).
According to the complaint, during the class period, defendants failed to disclose to investors: (a) the nature and magnitude of Seagate’s HDD sales to Huawei Technologies Co. Ltd., including that Seagate experienced a significant acceleration in sales to Huawei immediately after the U.S. Department of Commerce Bureau of Industry and Security (“BIS”) rules went into effect and Seagate’s competitors stopped selling to Huawei; and (b) that the underlying details of Seagate’s HDD manufacturing process, including the use of covered U.S. software and technology in “essential ‘production’” processes, rendered its sales to Huawei in violation of the BIS export rules. In addition, Seagate was in blatant violation of the BIS export rules, which resulted in an ongoing investigation by the U.S. Department of Commerce and exposed the Company to hundreds of millions of dollars in fines and penalties. On news of these violations, Seagate’s stock price fell significantly, harming investors.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Seagate Technology Holdings PLC. Shareholders who want to act as lead plaintiff for the class must file their motion with the court by September 8, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
