Securities Fraud Class Action Lawsuit Vs. Seagate by Jakubowitz Law

Jakubowitz Law announces that a securities fraud class action lawsuit has commenced on behalf of shareholders of Seagate Technology Holdings plc.

The lawsuit seeks to recover losses for shareholders who purchased Seagate between September 15, 2020 and October 25, 2022.

Shareholders interested in acting as a lead plaintiff representing the class of wronged shareholders have until September 8, 2023 to petition the court.

According to a filed complaint, Seagate issued materially false and/or misleading statements and/or failed to disclose that:

• (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 US Department of Commerce Bureau of Industry and Security (BIS) rules went into effect and Seagate’s competitors stopped selling to Huawei; and
• (b) the underlying details of Seagate’s HDD manufacturing process, including the use of covered US software and technology in “essential ‘production'” processes, rendered its sales to Huawei in violation of the BIS export rules. As a result, Seagate was in blatant violation of the BIS export rules which resulted in an ongoing investigation by the US Department of Commerce and exposed Seagate to hundreds of millions of dollars in fines and penalties.