Class Action of Kessler Topaz Meltzer & Check Vs. Seagate

The law firm of Kessler Topaz Meltzer & Check, LLP informs investors that a securities class action lawsuit has been filed in the United States District Court for the Northern District of California vs. Seagate Technology Holdings plc.

The action charges Seagate with violations of the federal securities laws, including omissions and fraudulent misrepresentations relating to the company’s business, operations, and prospects. As a result of Seagate’s materially misleading statements and omissions to the public, Seagate’s investors have suffered significant losses.

Seagate is a global supplier of storage products, including HDDs, and the company, Huawei Technologies Co. Ltd., is a significant purchaser of these products. On May 16, 2019, Huawei and certain of its non-US affiliates were added to the US Department of Commerce Bureau of Industry and Security’s (BIS) Export Administration Regulations Entity List, which is a list of names of certain foreign persons and entities that are subject to specific license requirements for the export, re-export, and/or transfer (in-country) of specified items.

On October 26, 2022, Seagate disclosed that it received a Proposed Charging Letter from the BIS alleging that it violated the Expert Administration Regulations by providing Seagate HDDs to “a customer and its affiliates listed on the BIS Entity List between August 2020 and September 2021.“

Following this news, the price of Seagate common stock fell nearly 8%, and fell an additional near 7% over the following three trading days.