Former Employee Filed Class Action Vs. WD

In a recent SEC filing WD wrote:
On March 20, 2009, plaintiff Ghazala H. Durrani, a former employee of the company, filed a putative class action complaint in the Alameda County, CA Superior Court.

The complaint alleges that certain of the company’s engineers have been misclassified as exempt employees under California state law and are, therefore, due unpaid hourly overtime wages and other amounts, as well as penalties for allegedly missed meal and rest periods.

By court order dated April 24, 2009, the case was transferred to the Orange County, CA Superior Court, where it is now pending.

On or about June 16, 2009, the company was dismissed from the case without prejudice by stipulation, leaving WD as the sole remaining defendant.

On or about June 4, 2009, WD filed its answer to the complaint, denying the substantive allegations thereof and raising several affirmative defenses. The case is in the preliminary stages, with no formal discovery having occurred.

A court hearing on whether the case should be certified as a class action will likely not occur until mid 2010 at the earliest.

If the company is unsuccessful in its defense of this matter, potential liability could include unpaid wages, interest, penalties, attorneys’ fees and costs.

The company intends to defend itself vigorously in this matter.