Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of the common stock of Seagate Technology Holdings plc between September 15, 2020 and October 25, 2022, both dates inclusive.
A class action lawsuit has already been filed.
According to the lawsuit, defendants made false and/or misleading statements regarding the company’s business, operations, and prospects.
Specifically, defendants failed to disclose to investors that:
- (1) the nature and magnitude of Seagate’s HDDs sales to Huawei, including that Seagate experienced a significant acceleration in sales to Huawei immediately after the BIS rules went into effect and Seagate’s competitors stopped selling to Huawei;
- (2) 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 U.S. Department of Commerce Bureau of Industry and Security (BIS) export rules; and
- (3) In addition, as a result, 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 Seagate to hundreds of millions of dollars in fines and penalties. When the true details entered the market, the lawsuit claims that investors suffered damages.