Seagate settles Huawei sales lawsuit for 175 million
Seagate Technology agreed to pay 175 million dollars to settle a shareholder class action alleging the company hid illegal hard drive sales to Huawei. The deal follows a previous 300 million dollar government penalty for violating U.S. export controls between 2020 and 2023.
SEAGATE TECHNOLOGY HOLDINGS agreed to a $175 million settlement to resolve shareholder claims it concealed illegal sales to China. The lawsuit alleged the firm hid $1.1 billion in hard drive shipments to Huawei despite United States export bans. Investors seek accountability for a subsequent $300 million regulatory penalty that erased market value between 2020 and 2023.
A preliminary settlement was filed on Friday in San Francisco federal court and awaits judicial approval. Shareholders led by pension funds in Arkansas, Mississippi, Germany, and Luxembourg claim the sales inflated profit.
