Invested in
Seagate Technology?
Attention Seagate shareholders: contact investor lawyers for a free evaluation of your potential options and claims for compensation today.
- Did you acquire shares of Seagate Technology Holdings (NASDAQ: STX) on or before September 2020, and do you still hold your Seagate shares?
- Are you concerned about the alleged violations by certain Seagate officers and directors of U.S. export controls related to selling hard disk drives to Huawei Technologies Co. Ltd.?
- Are you concerned about Seagate’s potential exposure to regulatory investigation and millions of dollars in fines and penalties as a result of its alleged violations of the US export controls?
- Would you like your potential options for compensation and/or redress to be reviewed by an experienced team of investor lawyers?
Request a free case evaluation of your potential claims for compensation today, via email at arosca@rscounsel.law, through the contact form on this page, or by calling 888-998-0530.
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Posted January 15, 2024
Seagate Class Action Investigation
Securities attorneys Alan Rosca and Paul Scarlato have been investigating potential securities violations and corporate misconduct in connection with Seagate’s alleged sales of hard drives (“HDD”) to Huawei, and have identified potential areas of concern for Seagate investors.
What Seagate Investors May Do
STX investors interested in an evaluation of their potential options to seek compensation and/or pursue claims related to their Seagate investment may contact investor rights attorneys Alan Rosca or Paul Scarlato. Claims that are not timely pursued may expire or otherwise be lost, generally speaking.
Get in Touch with an Experienced Team of Investor Attorneys
Attorneys Rosca and Scarlato have extensive experience in seeking compensation related to investor harm and pursuing claims arising out of alleged violations of securities law and/or corporate misconduct and are currently evaluating potential claims on behalf of investors in Seagate.
They typically work on a contingent fee basis, do not require any money down from their clients, advance case expenses, and only get paid for their fees and expenses if and when successful, following review and approval by the Court of any fee application.
Concerned STX stock investors may contact attorneys Rosca or Scarlato to discuss their potential options toll free at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
Potential Compensation Claims
Has Seagate Been Accused of Misconduct?
Seagate, William D. Mosley (Segate’s CEO), and Gianluca Romano (Segate’s CFO) have been subject of a securities class action lawsuit, filed in the United States District Court for the Northern District of California, pending as of the date of this blog.
Seagate, Mosely, and Romano are accused of making false and/or misleading statements and/or failing to disclose to investors the nature and extent of the HDD sales to Huawei, including the alleged acceleration of sales in the immediate aftermath of the publication of the U.S. Commerce Department’s Bureau of Industry and Security (“BIS”) rules.
In August 2020, BIS reportedly imposed controls over certain foreign-produced items related to Huawei.
In October 2022, Seagate reportedly disclosed it has received a proposed charging letter (“PCL”) from the BIS, alleging violations of the U.S. Export Administration Regulations (“EAR”) due to hard drive sales to a customer and its affiliates listed on the BIS Entity List during August 2020 and September 2021, according to an 8-K Form. This disclosure was also reportedly accompanied by company’s financial results for the first quarter of 2022, reporting declining HDD sales and restructuring plans to reduce its global headcount by 8%. The news was followed by an 8% decline in the STX price, the complaint alleges, closing at $53.39 on October 26, 2022, from $58 the previous day.
On April 19, 2023, BIS has issued a press release (“Press Release”) announcing a “$300m administrative penalty, a mandatory multi-year audit requirement, and a five-year suspended Denial Order” against Seagate. According to the announcement, between August 2020 and September 2021 Seagate and its affiliates violated EAR on 429 occasions by allegedly shipping approximately 7.4 million hard drives to Huawei According to the Order, the $300 million fine is approximated to exceed twice Seagate’s net profits for the alleged illegal exports to or involving Huawei.
What Happened to Seagate’s Directors and Officers?
On April 20, 2023, shortly after the BIS penalty was announced, Seagate issued an 8-K report disclosing, among others, temporary salary reductions for William D. Mosley, Gianluca Romano, and Ban Seng Teh, Seagate’s Executive Vice President and Chief Commercial Officer. In addition, Seagate announced the departure of its Executive Vice President of Operations and Technology, Jeffrey D. Nygaard.
A few months later, in July 2023, Edward J. Zander reportedly announced his retirement from the Board of Directors.
On December 26, 2023, Seagate’s Senior Vice President, Chief Legal Officer and Corporate Secretary, Katherine E. Schuelke, reportedly announced her departure “to pursue other opportunities.”
Potential Compensation Claims
Do Seagate Shareholders Have Claims for Compensation?
Investor rights attorneys Alan Rosca and Paul Scarlato at Rosca Scarlato are investigating potential options and evaluating potential claims for compensation and/or other redress on behalf of Seagate Technology Holdings shareholders who are concerned about Seagate’s HDD sales to Huawei, amongst others. The Rosca Scarlato attorneys have decades of combined experience representing victims of corporate or financial misconduct.
If you are a Seagate investor who has acquired STX shares before September 2020, are concerned about the drop in the value of your investment, you may contact attorneys Alan Rosca or Paul Scarlato to learn more about your rights and for an evaluation of your potential claims, or to provide useful information.
All consultations are free. The Rosca Scarlato attorneys typically take cases like this on a contingency fee basis, advance all case costs, and only get paid for their fees and expenses if and when they are successful, following review and approval by the Court of any fee application.
To reach attorney Alan Rosca or his colleagues, Seagate investors may call 888-998-0530, email arosca@rscounsel.law, or leave a message through the contact form on this webpage.
The general considerations on this page are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investor’s situation, learn of the relevant facts and can tailor any advice to that investor’s facts. The Seagate Class Action Investigation page is not affiliated with Seagate. There has not been an adjudication on the merits of any allegations referenced in this blog post, as of the date of the posting.
Contact info:
Rosca Scarlato LLC – 216-946-7070 / 888-998-0530.
Alan Rosca – arosca@rscounsel.law
Paul Scarlato – pscarlato@rscounsel.law
Recent Investigations
DISCLAIMER
In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.
