WD Disagrees With Decision of Minnesota Court of Appeals

In a SEC filing, Western Digital Corporation, wrote:

On July 22, 2013, the Court of Appeals of the State of Minnesota reversed the decision of the District Court of Hennepin County, Minnesota, which had vacated a $630.4 million final arbitration award and ordered a rehearing of certain claims in the arbitration between Western Digital Corporation and Seagate Technology, LLC.

In the arbitration, Seagate alleged, among other things, misappropriation of eight alleged trade secrets by the company and a now former employee. The District Court confirmed the arbitration award with respect to each of the five trade secret claims that the company and the former employee had won at the arbitration, and vacated the arbitration award and ordered a rehearing with respect to the three trade secret claims that the company and the former employee had lost.

The Appellate Court reversed the District Court’s decision and remanded for entry of an order and judgment confirming the arbitration award.

The company strongly disagrees with the decision of the Minnesota Court of Appeals, believes that the District Court’s decision was correct, and will file a petition for review with the Minnesota Supreme Court. If the Minnesota Supreme Court elects not to hear the company’s petition for review or if the Minnesota Supreme Court affirms the Appellate Court decision, the District Court is expected to enter an order and judgment confirming the $630.4 million final arbitration award, plus post-award interest on the $525 million initial award at the statutory rate of 10% from January 24, 2012.

No judgment will be entered while the company is petitioning the Minnesota Supreme Court for review.

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